UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-8326
MFS VARIABLE INSURANCE TRUST
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
111 Huntington Avenue
Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant's telephone number, including area code: (617) 954-5000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2022
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
1 | |
2 | |
3 | |
4 | |
8 | |
9 | |
10 | |
11 | |
13 | |
19 | |
20 | |
20 | |
20 | |
20 |
Thermo Fisher Scientific, Inc. | 3.3% |
Visa, Inc., “A” | 3.1% |
Roche Holding AG | 2.8% |
Comcast Corp., “A” | 2.7% |
Medtronic PLC | 2.6% |
Schneider Electric SE | 2.6% |
Accenture PLC, “A” | 2.5% |
Nestle S.A. | 2.5% |
LVMH Moet Hennessy Louis Vuitton SE | 2.2% |
Diageo PLC | 2.2% |
Health Care | 19.9% |
Industrials | 18.4% |
Information Technology | 14.6% |
Consumer Staples | 13.9% |
Financials | 10.7% |
Consumer Discretionary | 7.8% |
Communication Services | 7.5% |
Materials | 6.5% |
Equity Warrants (o) | 0.0% |
United States | 55.7% |
France | 10.6% |
Switzerland | 8.9% |
United Kingdom | 7.2% |
Germany | 4.1% |
Canada | 3.9% |
Netherlands | 2.5% |
Japan | 1.9% |
Sweden | 1.6% |
Other Countries | 3.6% |
United States Dollar | 58.5% |
Euro | 20.3% |
Swiss Franc | 8.9% |
British Pound Sterling | 7.2% |
Japanese Yen | 1.9% |
Swedish Krona | 1.6% |
South Korean Won | 0.8% |
Danish Krone | 0.6% |
Mexican Peso | 0.2% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(o) | Less than 0.1%. |
(x) | Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents and Other. |
(y) | Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio's net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.92% | $1,000.00 | $787.73 | $4.08 |
Hypothetical (h) | 0.92% | $1,000.00 | $1,020.23 | $4.61 | |
Service Class | Actual | 1.17% | $1,000.00 | $786.79 | $5.18 |
Hypothetical (h) | 1.17% | $1,000.00 | $1,018.99 | $5.86 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.3% | ||||
Aerospace & Defense – 2.9% | ||||
Honeywell International, Inc. | 6,108 | $ 1,061,631 | ||
MTU Aero Engines Holding AG | 1,203 | 218,981 | ||
Rolls-Royce Holdings PLC (a) | 227,770 | 229,991 | ||
$1,510,603 | ||||
Airlines – 0.8% | ||||
Aena S.A. (a) | 3,218 | $ 408,892 | ||
Alcoholic Beverages – 5.7% | ||||
Carlsberg A.S., “B” | 2,163 | $ 275,497 | ||
Diageo PLC | 26,189 | 1,125,519 | ||
Heineken N.V. | 8,557 | 780,156 | ||
Pernod Ricard S.A. | 4,116 | 756,132 | ||
$2,937,304 | ||||
Apparel Manufacturers – 4.4% | ||||
Burberry Group PLC | 16,630 | $ 332,199 | ||
Compagnie Financiere Richemont S.A. | 7,161 | 762,495 | ||
LVMH Moet Hennessy Louis Vuitton SE | 1,891 | 1,152,739 | ||
$2,247,433 | ||||
Automotive – 0.4% | ||||
Aptiv PLC (a) | 2,151 | $ 191,590 | ||
Broadcasting – 2.2% | ||||
Omnicom Group, Inc. | 1,955 | $ 124,358 | ||
Walt Disney Co. (a) | 7,240 | 683,456 | ||
WPP Group PLC | 34,614 | 347,450 | ||
$1,155,264 | ||||
Brokerage & Asset Managers – 2.8% | ||||
Charles Schwab Corp. | 12,866 | $ 812,874 | ||
Deutsche Boerse AG | 1,696 | 283,661 | ||
London Stock Exchange Group | 3,661 | 340,123 | ||
$1,436,658 | ||||
Business Services – 9.5% | ||||
Accenture PLC, “A” | 4,708 | $ 1,307,176 | ||
Adecco S.A. | 3,788 | 128,720 | ||
Brenntag AG | 3,529 | 229,659 | ||
Cognizant Technology Solutions Corp., “A” | 8,671 | 585,206 | ||
Compass Group PLC | 16,524 | 337,927 | ||
Equifax, Inc. | 3,391 | 619,807 | ||
Fidelity National Information Services, Inc. | 7,843 | 718,968 | ||
Fiserv, Inc. (a) | 8,569 | 762,384 | ||
PayPal Holdings, Inc. (a) | 2,817 | 196,739 | ||
$4,886,586 | ||||
Cable TV – 2.7% | ||||
Comcast Corp., “A” | 35,618 | $ 1,397,650 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Chemicals – 2.2% | ||||
3M Co. | 4,573 | $ 591,792 | ||
PPG Industries, Inc. | 4,966 | 567,812 | ||
$1,159,604 | ||||
Computer Software – 2.6% | ||||
Check Point Software Technologies Ltd. (a) | 4,247 | $ 517,200 | ||
Oracle Corp. | 11,953 | 835,156 | ||
$1,352,356 | ||||
Computer Software - Systems – 0.8% | ||||
Samsung Electronics Co. Ltd. | 9,538 | $ 418,720 | ||
Construction – 0.5% | ||||
Otis Worldwide Corp. | 4,024 | $ 284,376 | ||
Consumer Products – 5.2% | ||||
Colgate-Palmolive Co. | 5,862 | $ 469,781 | ||
Essity AB | 31,612 | 825,393 | ||
International Flavors & Fragrances, Inc. | 4,836 | 576,064 | ||
Reckitt Benckiser Group PLC | 10,465 | 785,999 | ||
$2,657,237 | ||||
Electrical Equipment – 4.3% | ||||
Amphenol Corp., “A” | 5,059 | $ 325,698 | ||
Legrand S.A. | 7,442 | 549,507 | ||
Schneider Electric SE | 11,194 | 1,324,402 | ||
$2,199,607 | ||||
Electronics – 0.9% | ||||
Hoya Corp. | 2,900 | $ 247,616 | ||
Microchip Technology, Inc. | 4,138 | 240,335 | ||
$487,951 | ||||
Food & Beverages – 4.2% | ||||
Danone S.A. | 15,524 | $ 866,453 | ||
Nestle S.A. | 11,165 | 1,303,334 | ||
$2,169,787 | ||||
Gaming & Lodging – 1.0% | ||||
Marriott International, Inc., “A” | 2,283 | $ 310,511 | ||
Whitbread PLC | 6,583 | 198,574 | ||
$509,085 | ||||
Insurance – 2.9% | ||||
Aon PLC | 2,647 | $ 713,843 | ||
Willis Towers Watson PLC | 3,901 | 770,018 | ||
$1,483,861 | ||||
Internet – 1.6% | ||||
Alphabet, Inc., “A” (a) | 193 | $ 420,597 | ||
eBay, Inc. | 9,126 | 380,281 | ||
$800,878 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Machinery & Tools – 1.2% | ||||
Carrier Global Corp. | 3,326 | $ 118,605 | ||
Kubota Corp. | 35,300 | 527,367 | ||
$645,972 | ||||
Major Banks – 3.2% | ||||
Erste Group Bank AG | 5,626 | $ 142,678 | ||
Goldman Sachs Group, Inc. | 3,216 | 955,216 | ||
UBS Group AG | 35,448 | 571,460 | ||
$1,669,354 | ||||
Medical Equipment – 14.4% | ||||
Abbott Laboratories | 7,609 | $ 826,718 | ||
Boston Scientific Corp. (a) | 21,137 | 787,776 | ||
Cooper Cos., Inc. | 1,507 | 471,872 | ||
EssilorLuxottica | 1,336 | 200,069 | ||
Medtronic PLC | 15,196 | 1,363,841 | ||
Olympus Corp. | 10,000 | 200,951 | ||
Sonova Holding AG | 558 | 177,690 | ||
Stryker Corp. | 4,150 | 825,559 | ||
Thermo Fisher Scientific, Inc. | 3,174 | 1,724,371 | ||
Waters Corp. (a) | 1,476 | 488,526 | ||
Zimmer Biomet Holdings, Inc. | 3,222 | 338,503 | ||
$7,405,876 | ||||
Other Banks & Diversified Financials – 4.9% | ||||
American Express Co. | 4,512 | $ 625,454 | ||
Grupo Financiero Banorte S.A. de C.V. | 20,543 | 114,588 | ||
Julius Baer Group Ltd. | 4,157 | 191,771 | ||
Visa, Inc., “A” | 8,110 | 1,596,778 | ||
$2,528,591 | ||||
Pharmaceuticals – 5.5% | ||||
Bayer AG | 11,038 | $ 656,096 | ||
Merck KGaA | 4,215 | 711,155 | ||
Roche Holding AG | 4,345 | 1,449,850 | ||
$2,817,101 | ||||
Printing & Publishing – 0.2% | ||||
Wolters Kluwer N.V. | 928 | $ 90,014 | ||
Railroad & Shipping – 4.9% | ||||
Canadian National Railway Co. | 8,308 | $ 934,401 | ||
Canadian Pacific Railway Ltd. | 15,582 | 1,088,247 | ||
Union Pacific Corp. | 2,371 | 505,687 | ||
$2,528,335 | ||||
Specialty Chemicals – 4.3% | ||||
Akzo Nobel N.V. | 6,370 | $ 418,016 | ||
L'Air Liquide S.A. | 3,417 | 458,778 | ||
Linde PLC | 827 | 237,787 | ||
Linde PLC | 3,769 | 1,082,027 | ||
$2,196,608 | ||||
Specialty Stores – 0.3% | ||||
Hermes International | 141 | $ 157,661 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Telecommunications - Wireless – 1.7% | ||||
Liberty Broadband Corp. (a) | 7,659 | $ 885,687 | ||
Trucking – 1.1% | ||||
United Parcel Service, Inc., “B” | 3,181 | $ 580,660 | ||
Total Common Stocks (Identified Cost, $29,361,797) | $51,201,301 |
Strike Price | First Exercise | |||
Warrants – 0.0% | ||||
Apparel Manufacturers – 0.0% | ||||
Compagnie Financiere Richemont S.A. (1 share for 2 warrants, Expiration 12/04/23) (a) (Identified Cost, $0) | CHF 67.00 | 11/20/23 | 14,904 | $ 8,118 |
Investment Companies (h) – 0.5% | ||||
Money Market Funds – 0.5% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $258,564) | 258,572 | $ 258,546 | ||
Other Assets, Less Liabilities – 0.2% | 90,802 | |||
Net Assets – 100.0% | $51,558,767 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $258,546 and $51,209,419, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
CHF | Swiss Franc |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value (identified cost, $29,361,797) | $51,209,419 |
Investments in affiliated issuers, at value (identified cost, $258,564) | 258,546 |
Cash | 4,016 |
Receivables for | |
Investments sold | 32,781 |
Fund shares sold | 10,323 |
Interest and dividends | 171,497 |
Receivable from investment adviser | 9,020 |
Other assets | 193 |
Total assets | $51,695,795 |
Liabilities | |
Payables for | |
Investments purchased | $52,380 |
Fund shares reacquired | 23,252 |
Payable to affiliates | |
Administrative services fee | 98 |
Shareholder servicing costs | 97 |
Distribution and/or service fees | 154 |
Payable for independent Trustees' compensation | 7 |
Accrued expenses and other liabilities | 61,040 |
Total liabilities | $137,028 |
Net assets | $51,558,767 |
Net assets consist of | |
Paid-in capital | $23,497,277 |
Total distributable earnings (loss) | 28,061,490 |
Net assets | $51,558,767 |
Shares of beneficial interest outstanding | 2,438,817 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $40,398,665 | 1,906,377 | $21.19 |
Service Class | 11,160,102 | 532,440 | 20.96 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $632,474 |
Dividends from affiliated issuers | 846 |
Income on securities loaned | 485 |
Other | 3 |
Foreign taxes withheld | (51,331) |
Total investment income | $582,477 |
Expenses | |
Management fee | $262,916 |
Distribution and/or service fees | 16,088 |
Shareholder servicing costs | 5,240 |
Administrative services fee | 9,327 |
Independent Trustees' compensation | 1,553 |
Custodian fee | 7,313 |
Shareholder communications | 4,839 |
Audit and tax fees | 31,369 |
Legal fees | 144 |
Miscellaneous | 12,257 |
Total expenses | $351,046 |
Reduction of expenses by investment adviser | (66,085) |
Net expenses | $284,961 |
Net investment income (loss) | $297,516 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $775,462 |
Affiliated issuers | (20) |
Foreign currency | (1,996) |
Net realized gain (loss) | $773,446 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(15,113,895) |
Affiliated issuers | (18) |
Translation of assets and liabilities in foreign currencies | (7,009) |
Net unrealized gain (loss) | $(15,120,922) |
Net realized and unrealized gain (loss) | $(14,347,476) |
Change in net assets from operations | $(14,049,960) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $297,516 | $249,387 |
Net realized gain (loss) | 773,446 | 5,424,572 |
Net unrealized gain (loss) | (15,120,922) | 4,291,189 |
Change in net assets from operations | $(14,049,960) | $9,965,148 |
Total distributions to shareholders | $— | $(4,406,036) |
Change in net assets from fund share transactions | $(1,100,770) | $802,515 |
Total change in net assets | $(15,150,730) | $6,361,627 |
Net assets | ||
At beginning of period | 66,709,497 | 60,347,870 |
At end of period | $51,558,767 | $66,709,497 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $26.90 | $24.57 | $22.79 | $18.82 | $22.00 | $18.59 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.13 | $0.12 | $0.16 | $0.25 | $0.23 | $0.20 |
Net realized and unrealized gain (loss) | (5.84) | 4.07 | 2.73 | 5.35 | (2.23) | 4.20 |
Total from investment operations | $(5.71) | $4.19 | $2.89 | $5.60 | $(2.00) | $4.40 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.17) | $(0.26) | $(0.25) | $(0.21) | $(0.18) |
From net realized gain | — | (1.69) | (0.85) | (1.38) | (0.97) | (0.81) |
Total distributions declared to shareholders | $— | $(1.86) | $(1.11) | $(1.63) | $(1.18) | $(0.99) |
Net asset value, end of period (x) | $21.19 | $26.90 | $24.57 | $22.79 | $18.82 | $22.00 |
Total return (%) (k)(r)(s)(x) | (21.23)(n) | 17.21 | 13.29 | 30.57 | (9.74) | 24.07 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.15(a) | 1.13 | 1.16 | 1.16 | 1.13 | 1.16 |
Expenses after expense reductions | 0.92(a) | 0.92 | 0.92 | 0.95 | 0.97 | 0.97 |
Net investment income (loss) | 1.07(a)(l) | 0.45 | 0.75 | 1.16 | 1.07 | 0.95 |
Portfolio turnover | 4(n) | 12 | 12 | 11 | 15 | 11 |
Net assets at end of period (000 omitted) | $40,399 | $51,966 | $46,879 | $49,771 | $45,219 | $52,850 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $26.64 | $24.37 | $22.62 | $18.70 | $21.86 | $18.49 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.10 | $0.05 | $0.10 | $0.18 | $0.18 | $0.14 |
Net realized and unrealized gain (loss) | (5.78) | 4.03 | 2.71 | 5.32 | (2.21) | 4.18 |
Total from investment operations | $(5.68) | $4.08 | $2.81 | $5.50 | $(2.03) | $4.32 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.12) | $(0.21) | $(0.20) | $(0.16) | $(0.14) |
From net realized gain | — | (1.69) | (0.85) | (1.38) | (0.97) | (0.81) |
Total distributions declared to shareholders | $— | $(1.81) | $(1.06) | $(1.58) | $(1.13) | $(0.95) |
Net asset value, end of period (x) | $20.96 | $26.64 | $24.37 | $22.62 | $18.70 | $21.86 |
Total return (%) (k)(r)(s)(x) | (21.32)(n) | 16.88 | 13.04 | 30.20 | (9.92) | 23.75 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.40(a) | 1.38 | 1.41 | 1.41 | 1.38 | 1.42 |
Expenses after expense reductions | 1.17(a) | 1.17 | 1.17 | 1.20 | 1.22 | 1.22 |
Net investment income (loss) | 0.82(a)(l) | 0.19 | 0.48 | 0.85 | 0.86 | 0.68 |
Portfolio turnover | 4(n) | 12 | 12 | 11 | 15 | 11 |
Net assets at end of period (000 omitted) | $11,160 | $14,744 | $13,469 | $11,319 | $7,139 | $10,162 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(l) | Recognition of net investment income by the fund may be affected by the timing of the declaration of dividends by companies in which the fund invests and the actual annual net investment income ratio may differ. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $51,209,419 | $— | $— | $51,209,419 |
Mutual Funds | 258,546 | — | — | 258,546 |
Total | $51,467,965 | $— | $— | $51,467,965 |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $464,015 |
Long-term capital gains | 3,942,021 |
Total distributions | $4,406,036 |
As of 6/30/22 | |
Cost of investments | $30,096,975 |
Gross appreciation | 22,792,743 |
Gross depreciation | (1,421,753) |
Net unrealized appreciation (depreciation) | $21,370,990 |
As of 12/31/21 | |
Undistributed ordinary income | 381,130 |
Undistributed long-term capital gain | 5,245,887 |
Other temporary differences | (455) |
Net unrealized appreciation (depreciation) | 36,484,888 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $3,418,938 | |
Service Class | — | 987,098 | |
Total | $— | $4,406,036 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2.5 billion | 0.75% |
In excess of $2.5 billion | 0.65% |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 125,832 | $3,041,149 | 292,702 | $7,779,587 | |
Service Class | 42,582 | 1,003,622 | 105,795 | 2,743,776 | |
168,414 | $4,044,771 | 398,497 | $10,523,363 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 129,653 | $3,418,938 | |
Service Class | — | — | 37,762 | 987,098 | |
— | $— | 167,415 | $4,406,036 | ||
Shares reacquired | |||||
Initial Class | (151,163) | $(3,644,810) | (398,296) | $(10,442,200) | |
Service Class | (63,560) | (1,500,731) | (142,899) | (3,684,684) | |
(214,723) | $(5,145,541) | (541,195) | $(14,126,884) | ||
Net change | |||||
Initial Class | (25,331) | $(603,661) | 24,059 | $756,325 | |
Service Class | (20,978) | (497,109) | 658 | 46,190 | |
(46,309) | $(1,100,770) | 24,717 | $802,515 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $483,861 | $3,889,478 | $4,114,755 | $(20) | $(18) | $258,546 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $846 | $— |
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
18 | |
19 | |
19 | |
19 | |
19 |
Microsoft Corp. | 12.1% |
Amazon.com, Inc. | 6.5% |
Alphabet, Inc., “A” | 6.0% |
Apple, Inc. | 5.0% |
Mastercard, Inc., “A” | 3.4% |
Adobe Systems, Inc. | 3.3% |
Visa, Inc., “A” | 3.0% |
Danaher Corp. | 2.5% |
Thermo Fisher Scientific, Inc. | 2.5% |
Intuit, Inc. | 2.3% |
Information Technology | 39.0% |
Health Care | 15.0% |
Communication Services | 11.7% |
Consumer Discretionary | 9.5% |
Industrials | 6.6% |
Financials | 6.5% |
Materials | 3.2% |
Consumer Staples | 2.8% |
Real Estate | 1.3% |
Energy | 0.9% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.72% | $1,000.00 | $705.65 | $3.04 |
Hypothetical (h) | 0.72% | $1,000.00 | $1,021.22 | $3.61 | |
Service Class | Actual | 0.97% | $1,000.00 | $704.84 | $4.10 |
Hypothetical (h) | 0.97% | $1,000.00 | $1,019.98 | $4.86 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 96.5% | ||||
Apparel Manufacturers – 0.7% | ||||
NIKE, Inc., “B” | 109,180 | $ 11,158,196 | ||
Brokerage & Asset Managers – 2.7% | ||||
Charles Schwab Corp. | 337,649 | $ 21,332,664 | ||
CME Group, Inc. | 110,351 | 22,588,849 | ||
$43,921,513 | ||||
Business Services – 6.1% | ||||
Clarivate PLC (a) | 444,569 | $ 6,161,726 | ||
CoStar Group, Inc. (a) | 210,899 | 12,740,409 | ||
Equifax, Inc. | 68,723 | 12,561,190 | ||
MSCI, Inc. | 68,683 | 28,307,698 | ||
TransUnion | 184,922 | 14,791,911 | ||
Verisk Analytics, Inc., “A” | 149,363 | 25,853,242 | ||
$100,416,176 | ||||
Cable TV – 1.0% | ||||
Charter Communications, Inc., “A” (a) | 35,869 | $ 16,805,702 | ||
Computer Software – 21.6% | ||||
Adobe Systems, Inc. (a) | 147,937 | $ 54,153,818 | ||
Atlassian Corp. PLC, “A” (a) | 22,061 | 4,134,231 | ||
Autodesk, Inc. (a) | 59,866 | 10,294,557 | ||
Black Knight, Inc. (a) | 66,328 | 4,337,188 | ||
Bumble, Inc., “A” (a) | 73,011 | 2,055,260 | ||
Cadence Design Systems, Inc. (a) | 98,108 | 14,719,143 | ||
Intuit, Inc. | 100,086 | 38,577,148 | ||
Microsoft Corp. | 776,433 | 199,411,287 | ||
Salesforce, Inc. (a) | 103,935 | 17,153,433 | ||
Synopsys, Inc. (a) | 38,662 | 11,741,650 | ||
$356,577,715 | ||||
Computer Software - Systems – 6.4% | ||||
Apple, Inc. | 604,133 | $ 82,597,064 | ||
Block, Inc., “A” (a) | 56,354 | 3,463,517 | ||
ServiceNow, Inc. (a) | 40,580 | 19,296,601 | ||
Shopify, Inc. (a) | 23,870 | 745,699 | ||
$106,102,881 | ||||
Construction – 2.9% | ||||
Sherwin-Williams Co. | 116,792 | $ 26,150,897 | ||
Vulcan Materials Co. | 154,357 | 21,934,129 | ||
$48,085,026 | ||||
Consumer Products – 2.8% | ||||
Colgate-Palmolive Co. | 264,092 | $ 21,164,333 | ||
Estee Lauder Cos., Inc., “A” | 101,221 | 25,777,952 | ||
$46,942,285 | ||||
Electrical Equipment – 1.4% | ||||
AMETEK, Inc. | 140,554 | $ 15,445,479 | ||
Johnson Controls International PLC | 165,099 | 7,904,940 | ||
$23,350,419 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electronics – 4.1% | ||||
Applied Materials, Inc. | 76,733 | $ 6,981,168 | ||
ASML Holding N.V., ADR | 30,347 | 14,441,531 | ||
Lam Research Corp. | 32,899 | 14,019,909 | ||
NVIDIA Corp. | 216,068 | 32,753,748 | ||
$68,196,356 | ||||
Energy - Independent – 0.9% | ||||
EOG Resources, Inc. | 62,658 | $ 6,919,949 | ||
Hess Corp. | 68,655 | 7,273,311 | ||
$14,193,260 | ||||
Gaming & Lodging – 0.9% | ||||
Hilton Worldwide Holdings, Inc. | 136,582 | $ 15,220,698 | ||
General Merchandise – 0.4% | ||||
Dollar Tree, Inc. (a) | 45,668 | $ 7,117,358 | ||
Health Maintenance Organizations – 0.5% | ||||
UnitedHealth Group, Inc. | 16,585 | $ 8,518,553 | ||
Insurance – 1.7% | ||||
Aon PLC | 86,865 | $ 23,425,753 | ||
Arthur J. Gallagher & Co. | 27,497 | 4,483,111 | ||
$27,908,864 | ||||
Internet – 9.4% | ||||
Alphabet, Inc., “A” (a) | 45,088 | $ 98,258,475 | ||
Alphabet, Inc., “C” (a) | 14,266 | 31,206,162 | ||
Match Group, Inc. (a) | 145,618 | 10,148,118 | ||
Meta Platforms, Inc., “A” (a) | 96,760 | 15,602,550 | ||
$155,215,305 | ||||
Leisure & Toys – 1.2% | ||||
Electronic Arts, Inc. | 123,123 | $ 14,977,913 | ||
Take-Two Interactive Software, Inc. (a) | 32,279 | 3,955,146 | ||
$18,933,059 | ||||
Machinery & Tools – 0.5% | ||||
Roper Technologies, Inc. | 21,172 | $ 8,355,530 | ||
Medical & Health Technology & Services – 0.9% | ||||
ICON PLC (a) | 64,794 | $ 14,040,860 | ||
Medical Equipment – 10.8% | ||||
Abbott Laboratories | 281,192 | $ 30,551,511 | ||
Becton, Dickinson and Co. | 59,379 | 14,638,705 | ||
Boston Scientific Corp. (a) | 648,825 | 24,181,708 | ||
Danaher Corp. | 165,286 | 41,903,307 | ||
Edwards Lifesciences Corp. (a) | 183,232 | 17,423,531 | ||
STERIS PLC | 38,128 | 7,860,087 | ||
Thermo Fisher Scientific, Inc. | 76,330 | 41,468,562 | ||
$178,027,411 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Network & Telecom – 0.3% | ||||
Equinix, Inc., REIT | 7,129 | $ 4,683,896 | ||
Other Banks & Diversified Financials – 6.8% | ||||
American Express Co. | 53,279 | $ 7,385,535 | ||
Mastercard, Inc., “A” | 176,251 | 55,603,665 | ||
Visa, Inc., “A” | 252,975 | 49,808,248 | ||
$112,797,448 | ||||
Pharmaceuticals – 2.9% | ||||
Vertex Pharmaceuticals, Inc. (a) | 81,647 | $ 23,007,308 | ||
Zoetis, Inc. | 139,783 | 24,027,300 | ||
$47,034,608 | ||||
Railroad & Shipping – 0.8% | ||||
Canadian Pacific Railway Ltd. | 185,933 | $ 12,985,561 | ||
Restaurants – 0.6% | ||||
Chipotle Mexican Grill, Inc., “A” (a) | 7,374 | $ 9,639,735 | ||
Specialty Chemicals – 0.3% | ||||
Air Products & Chemicals, Inc. | 21,834 | $ 5,250,640 | ||
Specialty Stores – 6.9% | ||||
Amazon.com, Inc. (a) | 1,006,060 | $ 106,853,633 | ||
Lululemon Athletica, Inc. (a) | 23,015 | 6,274,119 | ||
$113,127,752 | ||||
Telecommunications - Wireless – 1.0% | ||||
American Tower Corp., REIT | 63,269 | $ 16,170,924 | ||
Total Common Stocks (Identified Cost, $704,485,968) | $1,590,777,731 | |||
Investment Companies (h) – 3.4% | ||||
Money Market Funds – 3.4% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $56,066,996) | 56,068,545 | $ 56,062,938 | ||
Other Assets, Less Liabilities – 0.1% | 1,862,651 | |||
Net Assets – 100.0% | $1,648,703,320 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $56,062,938 and $1,590,777,731, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value (identified cost, $704,485,968) | $1,590,777,731 |
Investments in affiliated issuers, at value (identified cost, $56,066,996) | 56,062,938 |
Receivables for | |
Investments sold | 10,317,005 |
Fund shares sold | 2,251,845 |
Dividends | 423,312 |
Other assets | 2,977 |
Total assets | $1,659,835,808 |
Liabilities | |
Payables for | |
Investments purchased | $10,133,823 |
Fund shares reacquired | 704,448 |
Payable to affiliates | |
Investment adviser | 63,334 |
Administrative services fee | 1,577 |
Shareholder servicing costs | 763 |
Distribution and/or service fees | 5,525 |
Payable for independent Trustees' compensation | 1,153 |
Accrued expenses and other liabilities | 221,865 |
Total liabilities | $11,132,488 |
Net assets | $1,648,703,320 |
Net assets consist of | |
Paid-in capital | $493,536,643 |
Total distributable earnings (loss) | 1,155,166,677 |
Net assets | $1,648,703,320 |
Shares of beneficial interest outstanding | 29,892,122 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,247,801,395 | 22,281,445 | $56.00 |
Service Class | 400,901,925 | 7,610,677 | 52.68 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $4,949,133 |
Dividends from affiliated issuers | 71,711 |
Other | 7,044 |
Foreign taxes withheld | (26,059) |
Total investment income | $5,001,829 |
Expenses | |
Management fee | $6,697,534 |
Distribution and/or service fees | 579,170 |
Shareholder servicing costs | 29,714 |
Administrative services fee | 147,860 |
Independent Trustees' compensation | 15,477 |
Custodian fee | 52,247 |
Shareholder communications | 35,672 |
Audit and tax fees | 32,383 |
Legal fees | 5,104 |
Miscellaneous | 25,638 |
Total expenses | $7,620,799 |
Reduction of expenses by investment adviser | (134,604) |
Net expenses | $7,486,195 |
Net investment income (loss) | $(2,484,366) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $66,260,660 |
Affiliated issuers | (650) |
Foreign currency | (371) |
Net realized gain (loss) | $66,259,639 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(755,943,087) |
Affiliated issuers | (4,058) |
Translation of assets and liabilities in foreign currencies | (7) |
Net unrealized gain (loss) | $(755,947,152) |
Net realized and unrealized gain (loss) | $(689,687,513) |
Change in net assets from operations | $(692,171,879) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(2,484,366) | $(8,712,024) |
Net realized gain (loss) | 66,259,639 | 216,129,503 |
Net unrealized gain (loss) | (755,947,152) | 279,529,796 |
Change in net assets from operations | $(692,171,879) | $486,947,275 |
Total distributions to shareholders | $— | $(317,188,320) |
Change in net assets from fund share transactions | $(39,277,967) | $14,964,640 |
Total change in net assets | $(731,449,846) | $184,723,595 |
Net assets | ||
At beginning of period | 2,380,153,166 | 2,195,429,571 |
At end of period | $1,648,703,320 | $2,380,153,166 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $79.36 | $73.81 | $59.40 | $47.01 | $48.90 | $38.76 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.06) | $(0.25) | $(0.14) | $(0.04) | $0.00(w) | $0.06 |
Net realized and unrealized gain (loss) | (23.30) | 17.21 | 18.88 | 17.53 | 1.81 | 11.95 |
Total from investment operations | $(23.36) | $16.96 | $18.74 | $17.49 | $1.81 | $12.01 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $(0.05) | $(0.05) |
From net realized gain | — | (11.41) | (4.33) | (5.10) | (3.65) | (1.82) |
Total distributions declared to shareholders | $— | $(11.41) | $(4.33) | $(5.10) | $(3.70) | $(1.87) |
Net asset value, end of period (x) | $56.00 | $79.36 | $73.81 | $59.40 | $47.01 | $48.90 |
Total return (%) (k)(r)(s)(x) | (29.44)(n) | 23.53 | 31.86 | 38.15 | 2.67 | 31.40 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.74(a) | 0.72 | 0.74 | 0.74 | 0.75 | 0.76 |
Expenses after expense reductions | 0.72(a) | 0.71 | 0.72 | 0.73 | 0.74 | 0.75 |
Net investment income (loss) | (0.20)(a) | (0.32) | (0.21) | (0.06) | 0.00(w) | 0.13 |
Portfolio turnover | 7(n) | 12 | 29 | 11 | 15 | 14 |
Net assets at end of period (000 omitted) | $1,247,801 | $1,805,385 | $1,681,327 | $1,467,280 | $1,226,217 | $1,332,128 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $74.74 | $70.23 | $56.82 | $45.26 | $47.27 | $37.57 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.14) | $(0.42) | $(0.29) | $(0.17) | $(0.13) | $(0.05) |
Net realized and unrealized gain (loss) | (21.92) | 16.34 | 18.03 | 16.83 | 1.77 | 11.57 |
Total from investment operations | $(22.06) | $15.92 | $17.74 | $16.66 | $1.64 | $11.52 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $— | $— |
From net realized gain | — | (11.41) | (4.33) | (5.10) | (3.65) | (1.82) |
Total distributions declared to shareholders | $— | $(11.41) | $(4.33) | $(5.10) | $(3.65) | $(1.82) |
Net asset value, end of period (x) | $52.68 | $74.74 | $70.23 | $56.82 | $45.26 | $47.27 |
Total return (%) (k)(r)(s)(x) | (29.52)(n) | 23.24 | 31.54 | 37.78 | 2.41 | 31.08 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.99(a) | 0.97 | 0.99 | 0.99 | 1.00 | 1.01 |
Expenses after expense reductions | 0.97(a) | 0.96 | 0.97 | 0.98 | 0.99 | 1.00 |
Net investment income (loss) | (0.45)(a) | (0.57) | (0.46) | (0.31) | (0.25) | (0.12) |
Portfolio turnover | 7(n) | 12 | 29 | 11 | 15 | 14 |
Net assets at end of period (000 omitted) | $400,902 | $574,768 | $514,102 | $401,008 | $287,412 | $289,733 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(w) | Per share amount was less than $0.01 and total return or ratio was less than 0.01%, as applicable. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $1,590,777,731 | $— | $— | $1,590,777,731 |
Mutual Funds | 56,062,938 | — | — | 56,062,938 |
Total | $1,646,840,669 | $— | $— | $1,646,840,669 |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $1,693,158 |
Long-term capital gains | 315,495,162 |
Total distributions | $317,188,320 |
As of 6/30/22 | |
Cost of investments | $761,910,091 |
Gross appreciation | 921,047,442 |
Gross depreciation | (36,116,864) |
Net unrealized appreciation (depreciation) | $884,930,578 |
As of 12/31/21 | |
Undistributed ordinary income | 8,838,825 |
Undistributed long-term capital gain | 197,621,834 |
Other temporary differences | 174 |
Net unrealized appreciation (depreciation) | 1,640,877,723 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $238,278,350 | |
Service Class | — | 78,909,970 | |
Total | $— | $317,188,320 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.65% |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,067,467 | $68,813,644 | 1,093,782 | $84,897,255 | |
Service Class | 653,337 | 39,675,741 | 937,570 | 69,147,302 | |
1,720,804 | $108,489,385 | 2,031,352 | $154,044,557 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 3,080,612 | $236,098,096 | |
Service Class | — | — | 1,092,331 | 78,909,970 | |
— | $— | 4,172,943 | $315,008,066 | ||
Shares reacquired | |||||
Initial Class | (1,536,005) | $(101,882,198) | (4,204,800) | $(331,398,633) | |
Service Class | (733,102) | (45,885,154) | (1,659,384) | (122,689,350) | |
(2,269,107) | $(147,767,352) | (5,864,184) | $(454,087,983) | ||
Net change | |||||
Initial Class | (468,538) | $(33,068,554) | (30,406) | $(10,403,282) | |
Service Class | (79,765) | (6,209,413) | 370,517 | 25,367,922 | |
(548,303) | $(39,277,967) | 340,111 | $14,964,640 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $597,603 | $139,580,940 | $84,110,897 | $(650) | $(4,058) | $56,062,938 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $71,711 | $— |
1 | |
2 | |
3 | |
4 | |
8 | |
9 | |
10 | |
11 | |
13 | |
19 | |
20 | |
20 | |
20 | |
20 |
Microsoft Corp. | 6.4% |
Alphabet, Inc., “A” | 4.9% |
Johnson & Johnson | 2.6% |
Apple, Inc. | 2.6% |
JPMorgan Chase & Co. | 2.2% |
ConocoPhillips | 2.2% |
Vertex Pharmaceuticals, Inc. | 2.2% |
American Tower Corp., REIT | 2.1% |
Visa, Inc., “A” | 2.1% |
Thermo Fisher Scientific, Inc. | 2.0% |
Information Technology | 23.9% |
Health Care | 19.9% |
Communication Services | 10.4% |
Financials | 10.1% |
Industrials | 8.4% |
Consumer Discretionary | 7.3% |
Consumer Staples | 7.1% |
Real Estate | 4.0% |
Materials | 4.0% |
Energy | 2.2% |
Utilities | 0.9% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.78% | $1,000.00 | $816.41 | $3.51 |
Hypothetical (h) | 0.78% | $1,000.00 | $1,020.93 | $3.91 | |
Service Class | Actual | 1.03% | $1,000.00 | $815.33 | $4.64 |
Hypothetical (h) | 1.03% | $1,000.00 | $1,019.69 | $5.16 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.2% | ||||
Aerospace & Defense – 3.1% | ||||
Honeywell International, Inc. | 75,393 | $ 13,104,057 | ||
Howmet Aerospace, Inc. | 335,382 | 10,547,764 | ||
$23,651,821 | ||||
Alcoholic Beverages – 2.2% | ||||
Diageo PLC | 204,768 | $ 8,800,271 | ||
Pernod Ricard S.A. | 40,687 | 7,474,431 | ||
$16,274,702 | ||||
Apparel Manufacturers – 1.1% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 13,304 | $ 8,110,019 | ||
Biotechnology – 0.4% | ||||
Illumina, Inc. (a) | 14,948 | $ 2,755,813 | ||
Brokerage & Asset Managers – 2.2% | ||||
Charles Schwab Corp. | 91,077 | $ 5,754,245 | ||
NASDAQ, Inc. | 72,266 | 11,023,455 | ||
$16,777,700 | ||||
Business Services – 5.5% | ||||
Accenture PLC, “A” | 32,377 | $ 8,989,474 | ||
Amdocs Ltd. | 149,536 | 12,457,844 | ||
Fidelity National Information Services, Inc. | 115,651 | 10,601,727 | ||
Fiserv, Inc. (a) | 104,652 | 9,310,889 | ||
$41,359,934 | ||||
Cable TV – 1.9% | ||||
Cable One, Inc. | 2,532 | $ 3,264,558 | ||
Comcast Corp., “A” | 291,399 | 11,434,497 | ||
$14,699,055 | ||||
Chemicals – 0.5% | ||||
PPG Industries, Inc. | 33,330 | $ 3,810,952 | ||
Computer Software – 8.6% | ||||
Adobe Systems, Inc. (a) | 25,920 | $ 9,488,275 | ||
Microsoft Corp. | 188,156 | 48,324,106 | ||
Salesforce, Inc. (a) | 42,473 | 7,009,744 | ||
$64,822,125 | ||||
Computer Software - Systems – 2.6% | ||||
Apple, Inc. | 141,915 | $ 19,402,619 | ||
Construction – 1.7% | ||||
Masco Corp. | 155,866 | $ 7,886,820 | ||
Sherwin-Williams Co. | 22,545 | 5,048,051 | ||
$12,934,871 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – 2.7% | ||||
Colgate-Palmolive Co. | 112,382 | $ 9,006,293 | ||
Estee Lauder Cos., Inc., “A” | 16,052 | 4,087,963 | ||
Kimberly-Clark Corp. | 57,110 | 7,718,417 | ||
$20,812,673 | ||||
Containers – 1.9% | ||||
Ball Corp. | 77,684 | $ 5,342,329 | ||
Crown Holdings, Inc. | 95,277 | 8,781,681 | ||
$14,124,010 | ||||
Electrical Equipment – 3.9% | ||||
AMETEK, Inc. | 57,983 | $ 6,371,752 | ||
Fortive Corp. | 93,891 | 5,105,792 | ||
Johnson Controls International PLC | 218,745 | 10,473,511 | ||
TE Connectivity Ltd. | 68,403 | 7,739,799 | ||
$29,690,854 | ||||
Electronics – 2.4% | ||||
Analog Devices, Inc. | 54,028 | $ 7,892,951 | ||
Texas Instruments, Inc. | 65,785 | 10,107,865 | ||
$18,000,816 | ||||
Energy - Independent – 2.2% | ||||
ConocoPhillips | 187,524 | $ 16,841,530 | ||
Food & Beverages – 0.9% | ||||
Mondelez International, Inc. | 111,393 | $ 6,916,391 | ||
Forest & Paper Products – 0.7% | ||||
Rayonier, Inc., REIT | 149,374 | $ 5,583,600 | ||
General Merchandise – 2.6% | ||||
Costco Wholesale Corp. | 19,899 | $ 9,537,193 | ||
Dollar General Corp. | 41,911 | 10,286,636 | ||
$19,823,829 | ||||
Health Maintenance Organizations – 1.5% | ||||
Cigna Corp. | 41,871 | $ 11,033,846 | ||
Insurance – 1.3% | ||||
Chubb Ltd. | 48,223 | $ 9,479,677 | ||
Internet – 6.6% | ||||
Alphabet, Inc., “A” (a) | 17,085 | $ 37,232,657 | ||
Alphabet, Inc., “C” (a) | 5,957 | 13,030,640 | ||
$50,263,297 | ||||
Leisure & Toys – 1.8% | ||||
Electronic Arts, Inc. | 111,438 | $ 13,556,433 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Major Banks – 5.8% | ||||
Bank of America Corp. | 477,155 | $ 14,853,835 | ||
Goldman Sachs Group, Inc. | 41,606 | 12,357,814 | ||
JPMorgan Chase & Co. | 149,752 | 16,863,573 | ||
$44,075,222 | ||||
Medical & Health Technology & Services – 1.5% | ||||
ICON PLC (a) | 52,797 | $ 11,441,110 | ||
Medical Equipment – 7.3% | ||||
Becton, Dickinson and Co. | 55,858 | $ 13,770,673 | ||
Danaher Corp. | 39,960 | 10,130,659 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 113,330 | 3,219,705 | ||
Medtronic PLC | 143,002 | 12,834,430 | ||
Thermo Fisher Scientific, Inc. | 27,771 | 15,087,429 | ||
$55,042,896 | ||||
Network & Telecom – 1.2% | ||||
Equinix, Inc., REIT | 13,957 | $ 9,170,028 | ||
Other Banks & Diversified Financials – 4.7% | ||||
Mastercard, Inc., “A” | 43,658 | $ 13,773,226 | ||
Truist Financial Corp. | 122,862 | 5,827,345 | ||
Visa, Inc., “A” | 80,689 | 15,886,857 | ||
$35,487,428 | ||||
Pharmaceuticals – 9.3% | ||||
Eli Lilly & Co. | 40,592 | $ 13,161,144 | ||
Johnson & Johnson | 111,970 | 19,875,794 | ||
Merck & Co., Inc. | 154,063 | 14,045,924 | ||
Vertex Pharmaceuticals, Inc. (a) | 58,110 | 16,374,817 | ||
Zoetis, Inc. | 39,247 | 6,746,167 | ||
$70,203,846 | ||||
Railroad & Shipping – 1.1% | ||||
Canadian Pacific Railway Ltd. | 118,092 | $ 8,247,545 | ||
Specialty Chemicals – 0.9% | ||||
DuPont de Nemours, Inc. | 128,159 | $ 7,123,077 | ||
Specialty Stores – 4.8% | ||||
Amazon.com, Inc. (a) | 76,621 | $ 8,137,916 | ||
Home Depot, Inc. | 40,737 | 11,172,937 | ||
Target Corp. | 73,086 | 10,321,936 | ||
Tractor Supply Co. | 35,535 | 6,888,460 | ||
$36,521,249 | ||||
Telecommunications - Wireless – 2.1% | ||||
American Tower Corp., REIT | 62,185 | $ 15,893,864 | ||
Trucking – 0.3% | ||||
Old Dominion Freight Line, Inc. | 8,301 | $ 2,127,380 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – 0.9% | ||||
American Electric Power Co., Inc. | 72,300 | $ 6,936,462 | ||
Total Common Stocks (Identified Cost, $461,182,197) | $742,996,674 | |||
Investment Companies (h) – 1.8% | ||||
Money Market Funds – 1.8% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $13,504,266) | 13,504,909 | $ 13,503,559 | ||
Other Assets, Less Liabilities – (0.0)% | (43,523) | |||
Net Assets – 100.0% | $756,456,710 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $13,503,559 and $742,996,674, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value (identified cost, $461,182,197) | $742,996,674 |
Investments in affiliated issuers, at value (identified cost, $13,504,266) | 13,503,559 |
Receivables for | |
Fund shares sold | 52,046 |
Dividends | 783,742 |
Other assets | 1,439 |
Total assets | $757,337,460 |
Liabilities | |
Payables for | |
Fund shares reacquired | $730,501 |
Payable to affiliates | |
Investment adviser | 30,748 |
Administrative services fee | 751 |
Shareholder servicing costs | 488 |
Distribution and/or service fees | 5,709 |
Accrued expenses and other liabilities | 112,553 |
Total liabilities | $880,750 |
Net assets | $756,456,710 |
Net assets consist of | |
Paid-in capital | $330,704,858 |
Total distributable earnings (loss) | 425,751,852 |
Net assets | $756,456,710 |
Shares of beneficial interest outstanding | 20,926,170 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $343,287,127 | 9,402,027 | $36.51 |
Service Class | 413,169,583 | 11,524,143 | 35.85 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $5,371,582 |
Dividends from affiliated issuers | 7,453 |
Other | 7,354 |
Foreign taxes withheld | (18,026) |
Total investment income | $5,368,363 |
Expenses | |
Management fee | $2,842,564 |
Distribution and/or service fees | 583,796 |
Shareholder servicing costs | 19,947 |
Administrative services fee | 62,047 |
Independent Trustees' compensation | 6,356 |
Custodian fee | 19,461 |
Shareholder communications | 16,807 |
Audit and tax fees | 30,703 |
Legal fees | 1,815 |
Miscellaneous | 16,007 |
Total expenses | $3,599,503 |
Reduction of expenses by investment adviser | (53,381) |
Net expenses | $3,546,122 |
Net investment income (loss) | $1,822,241 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $33,749,663 |
Affiliated issuers | (410) |
Foreign currency | 33,699 |
Net realized gain (loss) | $33,782,952 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(192,549,791) |
Affiliated issuers | (707) |
Translation of assets and liabilities in foreign currencies | (3,290) |
Net unrealized gain (loss) | $(192,553,788) |
Net realized and unrealized gain (loss) | $(158,770,836) |
Change in net assets from operations | $(156,948,595) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $1,822,241 | $2,717,392 |
Net realized gain (loss) | 33,782,952 | 104,102,223 |
Net unrealized gain (loss) | (192,553,788) | 83,097,778 |
Change in net assets from operations | $(156,948,595) | $189,917,393 |
Total distributions to shareholders | $— | $(29,217,089) |
Change in net assets from fund share transactions | $81,813,449 | $(95,053,942) |
Total change in net assets | $(75,135,146) | $65,646,362 |
Net assets | ||
At beginning of period | 831,591,856 | 765,945,494 |
At end of period | $756,456,710 | $831,591,856 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $44.72 | $36.57 | $33.27 | $27.05 | $30.07 | $25.57 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.13 | $0.21 | $0.25 | $0.25 | $0.26 | $0.22 |
Net realized and unrealized gain (loss) | (8.34) | 9.53 | 4.26 | 8.08 | (1.71) | 5.62 |
Total from investment operations | $(8.21) | $9.74 | $4.51 | $8.33 | $(1.45) | $5.84 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.26) | $(0.21) | $(0.22) | $(0.20) | $(0.21) |
From net realized gain | — | (1.33) | (1.00) | (1.89) | (1.37) | (1.13) |
Total distributions declared to shareholders | $— | $(1.59) | $(1.21) | $(2.11) | $(1.57) | $(1.34) |
Net asset value, end of period (x) | $36.51 | $44.72 | $36.57 | $33.27 | $27.05 | $30.07 |
Total return (%) (k)(r)(s)(x) | (18.36)(n) | 26.81 | 13.87 | 31.58 | (5.49) | 23.35 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.80(a) | 0.79 | 0.80 | 0.80 | 0.80 | 0.82 |
Expenses after expense reductions | 0.78(a) | 0.78 | 0.79 | 0.79 | 0.79 | 0.79 |
Net investment income (loss) | 0.68(a) | 0.50 | 0.78 | 0.80 | 0.86 | 0.79 |
Portfolio turnover | 11(n) | 13 | 19 | 18 | 16 | 18 |
Net assets at end of period (000 omitted) | $343,287 | $296,678 | $269,852 | $265,499 | $231,900 | $283,237 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $43.97 | $35.99 | $32.77 | $26.68 | $29.69 | $25.28 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.07 | $0.10 | $0.17 | $0.17 | $0.18 | $0.15 |
Net realized and unrealized gain (loss) | (8.19) | 9.38 | 4.19 | 7.97 | (1.68) | 5.55 |
Total from investment operations | $(8.12) | $9.48 | $4.36 | $8.14 | $(1.50) | $5.70 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.17) | $(0.14) | $(0.16) | $(0.14) | $(0.16) |
From net realized gain | — | (1.33) | (1.00) | (1.89) | (1.37) | (1.13) |
Total distributions declared to shareholders | $— | $(1.50) | $(1.14) | $(2.05) | $(1.51) | $(1.29) |
Net asset value, end of period (x) | $35.85 | $43.97 | $35.99 | $32.77 | $26.68 | $29.69 |
Total return (%) (k)(r)(s)(x) | (18.47)(n) | 26.51 | 13.60 | 31.25 | (5.71) | 23.03 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.05(a) | 1.04 | 1.05 | 1.05 | 1.05 | 1.07 |
Expenses after expense reductions | 1.03(a) | 1.03 | 1.04 | 1.04 | 1.04 | 1.04 |
Net investment income (loss) | 0.36(a) | 0.24 | 0.53 | 0.55 | 0.62 | 0.55 |
Portfolio turnover | 11(n) | 13 | 19 | 18 | 16 | 18 |
Net assets at end of period (000 omitted) | $413,170 | $534,914 | $496,093 | $453,132 | $325,159 | $318,611 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $742,996,674 | $— | $— | $742,996,674 |
Mutual Funds | 13,503,559 | — | — | 13,503,559 |
Total | $756,500,233 | $— | $— | $756,500,233 |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $3,914,032 |
Long-term capital gains | 25,303,057 |
Total distributions | $29,217,089 |
As of 6/30/22 | |
Cost of investments | $475,500,747 |
Gross appreciation | 299,874,809 |
Gross depreciation | (18,875,323) |
Net unrealized appreciation (depreciation) | $280,999,486 |
As of 12/31/21 | |
Undistributed ordinary income | 12,036,943 |
Undistributed long-term capital gain | 97,024,289 |
Other temporary differences | (2,562) |
Net unrealized appreciation (depreciation) | 473,641,777 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $10,689,350 | |
Service Class | — | 18,527,739 | |
Total | $— | $29,217,089 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion | 0.60% |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 3,626,931 | $141,720,526 | 241,331 | $10,343,575 | |
Service Class | 197,732 | 7,853,685 | 424,823 | 17,614,977 | |
3,824,663 | $149,574,211 | 666,154 | $27,958,552 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 248,705 | $10,689,350 | |
Service Class | — | — | 438,112 | 18,527,739 | |
— | $— | 686,817 | $29,217,089 | ||
Shares reacquired | |||||
Initial Class | (858,615) | $(34,465,519) | (1,234,645) | $(51,496,591) | |
Service Class | (839,679) | (33,295,243) | (2,480,055) | (100,732,992) | |
(1,698,294) | $(67,760,762) | (3,714,700) | $(152,229,583) | ||
Net change | |||||
Initial Class | 2,768,316 | $107,255,007 | (744,609) | $(30,463,666) | |
Service Class | (641,947) | (25,441,558) | (1,617,120) | (64,590,276) | |
2,126,369 | $81,813,449 | (2,361,729) | $(95,053,942) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $3,181,407 | $182,230,769 | $171,907,500 | $(410) | $(707) | $13,503,559 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $7,453 | $— |
1 | |
2 | |
3 | |
4 | |
8 | |
9 | |
10 | |
11 | |
13 | |
19 | |
20 | |
20 | |
20 | |
20 |
Cadence Design Systems, Inc. | 3.1% |
PerkinElmer, Inc. | 3.1% |
Monolithic Power Systems, Inc. | 2.9% |
Arthur J. Gallagher & Co. | 2.7% |
MSCI, Inc. | 2.6% |
STERIS PLC | 2.5% |
Verisk Analytics, Inc., “A” | 2.3% |
AMETEK, Inc. | 2.1% |
ICON PLC | 1.9% |
Extra Space Storage, Inc., REIT | 1.8% |
Information Technology | 22.6% |
Health Care | 19.7% |
Industrials | 19.1% |
Consumer Discretionary | 14.2% |
Financials | 8.6% |
Communication Services | 4.7% |
Real Estate | 3.2% |
Materials | 2.8% |
Energy | 1.3% |
Consumer Staples | 1.1% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.80% | $1,000.00 | $696.25 | $3.36 |
Hypothetical (h) | 0.80% | $1,000.00 | $1,020.83 | $4.01 | |
Service Class | Actual | 1.05% | $1,000.00 | $696.07 | $4.42 |
Hypothetical (h) | 1.05% | $1,000.00 | $1,019.59 | $5.26 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.3% | ||||
Aerospace & Defense – 1.2% | ||||
Howmet Aerospace, Inc. | 123,817 | $ 3,894,045 | ||
Automotive – 2.3% | ||||
Copart, Inc. (a) | 38,175 | $ 4,148,095 | ||
LKQ Corp. | 64,084 | 3,145,884 | ||
$7,293,979 | ||||
Brokerage & Asset Managers – 2.5% | ||||
NASDAQ, Inc. | 37,551 | $ 5,728,029 | ||
Tradeweb Markets, Inc. | 33,996 | 2,320,227 | ||
$8,048,256 | ||||
Business Services – 13.0% | ||||
Clarivate PLC (a) | 241,017 | $ 3,340,496 | ||
CoStar Group, Inc. (a) | 71,391 | 4,312,730 | ||
Endava PLC, ADR (a) | 14,232 | 1,256,259 | ||
Equifax, Inc. | 24,717 | 4,517,773 | ||
Morningstar, Inc. | 8,456 | 2,044,914 | ||
MSCI, Inc. | 20,093 | 8,281,330 | ||
Thoughtworks Holding, Inc. (a) | 95,143 | 1,342,468 | ||
TransUnion | 64,356 | 5,147,836 | ||
Tyler Technologies, Inc. (a) | 12,358 | 4,108,788 | ||
Verisk Analytics, Inc., “A” | 42,495 | 7,355,460 | ||
$41,708,054 | ||||
Cable TV – 0.4% | ||||
Cable One, Inc. | 1,012 | $ 1,304,792 | ||
Computer Software – 11.5% | ||||
Autodesk, Inc. (a) | 14,544 | $ 2,500,986 | ||
Black Knight, Inc. (a) | 70,467 | 4,607,837 | ||
Bumble, Inc., “A” (a) | 38,727 | 1,090,165 | ||
Cadence Design Systems, Inc. (a) | 67,471 | 10,122,674 | ||
CCC Intelligent Holdings, Inc. (a) | 81,831 | 752,845 | ||
CCC Intelligent Holdings, Inc. (PIPE) (a) | 13,884 | 127,733 | ||
Dun & Bradstreet Holdings, Inc. (a) | 190,599 | 2,864,703 | ||
NICE Systems Ltd., ADR (a) | 26,869 | 5,170,939 | ||
Paylocity Holding Corp. (a) | 21,814 | 3,804,798 | ||
Qualtrics International, “A” (a) | 20,394 | 255,129 | ||
Synopsys, Inc. (a) | 18,051 | 5,482,089 | ||
Topicus.com, Inc. (a) | 5,829 | 328,900 | ||
$37,108,798 | ||||
Computer Software - Systems – 3.1% | ||||
Constellation Software, Inc. | 3,037 | $ 4,508,477 | ||
ServiceNow, Inc. (a) | 7,732 | 3,676,721 | ||
SS&C Technologies Holdings, Inc. | 28,900 | 1,678,223 | ||
$9,863,421 | ||||
Construction – 3.8% | ||||
AZEK Co., Inc. (a) | 79,902 | $ 1,337,559 | ||
Pool Corp. | 13,039 | 4,579,688 | ||
SiteOne Landscape Supply, Inc. (a) | 7,848 | 932,892 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – continued | ||||
Vulcan Materials Co. | 37,833 | $ 5,376,069 | ||
$12,226,208 | ||||
Consumer Products – 1.1% | ||||
Church & Dwight Co., Inc. | 37,244 | $ 3,451,029 | ||
Consumer Services – 1.5% | ||||
Bright Horizons Family Solutions, Inc. (a) | 58,370 | $ 4,933,432 | ||
Containers – 1.1% | ||||
Ball Corp. | 52,430 | $ 3,605,611 | ||
Electrical Equipment – 3.1% | ||||
AMETEK, Inc. | 62,544 | $ 6,872,960 | ||
Littlefuse, Inc. | 11,815 | 3,001,483 | ||
$9,874,443 | ||||
Electronics – 5.1% | ||||
ASM International N.V. | 9,248 | $ 2,312,378 | ||
Entegris, Inc. | 52,405 | 4,828,073 | ||
Monolithic Power Systems, Inc. | 24,526 | 9,418,965 | ||
$16,559,416 | ||||
Energy - Independent – 1.3% | ||||
Chesapeake Energy Corp. | 16,460 | $ 1,334,906 | ||
Continental Resources, Inc. | 13,038 | 852,033 | ||
Diamondback Energy, Inc. | 11,240 | 1,361,726 | ||
Hess Corp. | 7,620 | 807,263 | ||
$4,355,928 | ||||
Gaming & Lodging – 1.6% | ||||
Hyatt Hotels Corp. (a) | 39,659 | $ 2,931,197 | ||
Red Rock Resorts, Inc. | 67,437 | 2,249,698 | ||
$5,180,895 | ||||
General Merchandise – 0.5% | ||||
Five Below, Inc. (a) | 15,110 | $ 1,713,927 | ||
Insurance – 2.7% | ||||
Arthur J. Gallagher & Co. | 52,921 | $ 8,628,240 | ||
Internet – 2.9% | ||||
Gartner, Inc. (a) | 14,682 | $ 3,550,548 | ||
IAC/InterActiveCorp (a) | 22,342 | 1,697,322 | ||
Match Group, Inc. (a) | 56,821 | 3,959,855 | ||
$9,207,725 | ||||
Leisure & Toys – 1.8% | ||||
Electronic Arts, Inc. | 11,753 | $ 1,429,753 | ||
Take-Two Interactive Software, Inc. (a) | 35,061 | 4,296,024 | ||
$5,725,777 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Machinery & Tools – 1.7% | ||||
IDEX Corp. | 26,137 | $ 4,747,263 | ||
Wabtec Corp. | 9,348 | 767,284 | ||
$5,514,547 | ||||
Medical & Health Technology & Services – 4.8% | ||||
Charles River Laboratories International, Inc. (a) | 16,342 | $ 3,496,698 | ||
Guardant Health, Inc. (a) | 14,890 | 600,663 | ||
Henry Schein, Inc. (a) | 40,577 | 3,113,879 | ||
ICON PLC (a) | 28,585 | 6,194,369 | ||
IDEXX Laboratories, Inc. (a) | 6,241 | 2,188,906 | ||
$15,594,515 | ||||
Medical Equipment – 14.0% | ||||
Agilent Technologies, Inc. | 40,977 | $ 4,866,838 | ||
Align Technology, Inc. (a) | 6,372 | 1,508,061 | ||
Bio-Techne Corp. | 8,839 | 3,063,951 | ||
Bruker BioSciences Corp. | 49,112 | 3,082,269 | ||
Envista Holdings Corp. (a) | 135,461 | 5,220,667 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 82,919 | 2,355,729 | ||
Mettler-Toledo International, Inc. (a) | 2,076 | 2,384,846 | ||
PerkinElmer, Inc. | 70,562 | 10,035,328 | ||
STERIS PLC | 39,022 | 8,044,385 | ||
Waters Corp. (a) | 3,021 | 999,891 | ||
West Pharmaceutical Services, Inc. | 11,643 | 3,520,494 | ||
$45,082,459 | ||||
Other Banks & Diversified Financials – 0.2% | ||||
S&P Global, Inc. | 1,715 | $ 578,058 | ||
Pharmaceuticals – 0.8% | ||||
Alnylam Pharmaceuticals, Inc. (a) | 6,673 | $ 973,257 | ||
Ascendis Pharma, ADR (a) | 17,609 | 1,636,933 | ||
$2,610,190 | ||||
Pollution Control – 1.6% | ||||
Waste Connections, Inc. | 41,103 | $ 5,095,128 | ||
Printing & Publishing – 2.1% | ||||
Warner Music Group Corp. | 51,958 | $ 1,265,697 | ||
Wolters Kluwer N.V. | 57,281 | 5,556,157 | ||
$6,821,854 | ||||
Railroad & Shipping – 0.2% | ||||
Canadian Pacific Railway Ltd. | 7,446 | $ 520,029 | ||
Real Estate – 1.8% | ||||
Extra Space Storage, Inc., REIT | 34,609 | $ 5,887,683 | ||
Restaurants – 2.4% | ||||
Chipotle Mexican Grill, Inc., “A” (a) | 3,309 | $ 4,325,723 | ||
Domino's Pizza, Inc. | 8,650 | 3,370,992 | ||
$7,696,715 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Stores – 5.8% | ||||
Burlington Stores, Inc. (a) | 9,868 | $ 1,344,318 | ||
Lululemon Athletica, Inc. (a) | 13,003 | 3,544,748 | ||
O'Reilly Automotive, Inc. (a) | 8,344 | 5,271,405 | ||
Tractor Supply Co. | 17,595 | 3,410,791 | ||
Ulta Beauty, Inc. (a) | 12,842 | 4,950,334 | ||
$18,521,596 | ||||
Telecommunications - Wireless – 1.4% | ||||
SBA Communications Corp., REIT | 13,769 | $ 4,406,768 | ||
Total Common Stocks (Identified Cost, $214,023,796) | $313,013,518 | |||
Investment Companies (h) – 2.7% | ||||
Money Market Funds – 2.7% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $8,797,351) | 8,797,695 | $ 8,796,815 | ||
Other Assets, Less Liabilities – (0.0)% | (100,215) | |||
Net Assets – 100.0% | $321,710,118 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $8,796,815 and $313,013,518, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
PIPE | Private Investment in Public Equity |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value (identified cost, $214,023,796) | $313,013,518 |
Investments in affiliated issuers, at value (identified cost, $8,797,351) | 8,796,815 |
Receivables for | |
Investments sold | 1,281,349 |
Fund shares sold | 270,352 |
Dividends | 81,281 |
Other assets | 693 |
Total assets | $323,444,008 |
Liabilities | |
Payables for | |
Investments purchased | $1,228,298 |
Fund shares reacquired | 421,235 |
Payable to affiliates | |
Investment adviser | 13,056 |
Administrative services fee | 348 |
Shareholder servicing costs | 281 |
Distribution and/or service fees | 1,417 |
Payable for independent Trustees' compensation | 182 |
Accrued expenses and other liabilities | 69,073 |
Total liabilities | $1,733,890 |
Net assets | $321,710,118 |
Net assets consist of | |
Paid-in capital | $168,542,790 |
Total distributable earnings (loss) | 153,167,328 |
Net assets | $321,710,118 |
Shares of beneficial interest outstanding | 40,978,825 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $218,748,581 | 26,793,440 | $8.16 |
Service Class | 102,961,537 | 14,185,385 | 7.26 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $874,378 |
Dividends from affiliated issuers | 17,642 |
Income on securities loaned | 5,656 |
Other | 3,820 |
Foreign taxes withheld | (16,637) |
Total investment income | $884,859 |
Expenses | |
Management fee | $1,338,778 |
Distribution and/or service fees | 143,919 |
Shareholder servicing costs | 11,407 |
Administrative services fee | 31,757 |
Independent Trustees' compensation | 3,808 |
Custodian fee | 11,170 |
Shareholder communications | 10,399 |
Audit and tax fees | 31,411 |
Legal fees | 964 |
Miscellaneous | 14,145 |
Total expenses | $1,597,758 |
Reduction of expenses by investment adviser | (25,213) |
Net expenses | $1,572,545 |
Net investment income (loss) | $(687,686) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $3,912,067 |
Foreign currency | 151 |
Net realized gain (loss) | $3,912,218 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(139,830,514) |
Affiliated issuers | (536) |
Translation of assets and liabilities in foreign currencies | (4,131) |
Net unrealized gain (loss) | $(139,835,181) |
Net realized and unrealized gain (loss) | $(135,922,963) |
Change in net assets from operations | $(136,610,649) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(687,686) | $(2,260,530) |
Net realized gain (loss) | 3,912,218 | 53,345,166 |
Net unrealized gain (loss) | (139,835,181) | 7,698,109 |
Change in net assets from operations | $(136,610,649) | $58,782,745 |
Total distributions to shareholders | $— | $(88,068,256) |
Change in net assets from fund share transactions | $9,629,058 | $34,144,282 |
Total change in net assets | $(126,981,591) | $4,858,771 |
Net assets | ||
At beginning of period | 448,691,709 | 443,832,938 |
At end of period | $321,710,118 | $448,691,709 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $11.72 | $12.64 | $9.96 | $8.23 | $9.51 | $7.96 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.01) | $(0.05) | $(0.03) | $(0.01) | $(0.02) | $(0.01) |
Net realized and unrealized gain (loss) | (3.55) | 1.78 | 3.53 | 3.10 | 0.39 | 2.11 |
Total from investment operations | $(3.56) | $1.73 | $3.50 | $3.09 | $0.37 | $2.10 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $— | $(0.01) |
From net realized gain | — | (2.65) | (0.82) | (1.36) | (1.65) | (0.54) |
Total distributions declared to shareholders | $— | $(2.65) | $(0.82) | $(1.36) | $(1.65) | $(0.55) |
Net asset value, end of period (x) | $8.16 | $11.72 | $12.64 | $9.96 | $8.23 | $9.51 |
Total return (%) (k)(r)(s)(x) | (30.38)(n) | 14.11 | 36.48 | 38.66 | 1.24 | 27.00 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.81(a) | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
Expenses after expense reductions | 0.80(a) | 0.79 | 0.80 | 0.80 | 0.80 | 0.80 |
Net investment income (loss) | (0.31)(a) | (0.44) | (0.26) | (0.07) | (0.18) | (0.15) |
Portfolio turnover | 12(n) | 18 | 40 | 17 | 21 | 32 |
Net assets at end of period (000 omitted) | $218,749 | $306,174 | $311,988 | $290,512 | $247,614 | $297,463 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $10.43 | $11.53 | $9.17 | $7.68 | $8.99 | $7.56 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.02) | $(0.08) | $(0.05) | $(0.03) | $(0.04) | $(0.03) |
Net realized and unrealized gain (loss) | (3.15) | 1.63 | 3.23 | 2.88 | 0.38 | 2.00 |
Total from investment operations | $(3.17) | $1.55 | $3.18 | $2.85 | $0.34 | $1.97 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $— | $— |
From net realized gain | — | (2.65) | (0.82) | (1.36) | (1.65) | (0.54) |
Total distributions declared to shareholders | $— | $(2.65) | $(0.82) | $(1.36) | $(1.65) | $(0.54) |
Net asset value, end of period (x) | $7.26 | $10.43 | $11.53 | $9.17 | $7.68 | $8.99 |
Total return (%) (k)(r)(s)(x) | (30.39)(n) | 13.88 | 36.12 | 38.28 | 0.95 | 26.68 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.06(a) | 1.06 | 1.06 | 1.06 | 1.06 | 1.06 |
Expenses after expense reductions | 1.05(a) | 1.04 | 1.05 | 1.05 | 1.05 | 1.05 |
Net investment income (loss) | (0.55)(a) | (0.68) | (0.51) | (0.32) | (0.43) | (0.40) |
Portfolio turnover | 12(n) | 18 | 40 | 17 | 21 | 32 |
Net assets at end of period (000 omitted) | $102,962 | $142,517 | $131,845 | $103,504 | $86,560 | $100,052 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $280,306,216 | $127,733 | $— | $280,433,949 |
Canada | 10,452,534 | — | — | 10,452,534 |
Netherlands | 7,868,535 | — | — | 7,868,535 |
Ireland | 6,194,369 | — | — | 6,194,369 |
Israel | 5,170,939 | — | — | 5,170,939 |
Denmark | 1,636,933 | — | — | 1,636,933 |
United Kingdom | 1,256,259 | — | — | 1,256,259 |
Mutual Funds | 8,796,815 | — | — | 8,796,815 |
Total | $321,682,600 | $127,733 | $— | $321,810,333 |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $1,064,357 |
Long-term capital gains | 87,003,899 |
Total distributions | $88,068,256 |
As of 6/30/22 | |
Cost of investments | $223,241,034 |
Gross appreciation | 117,033,365 |
Gross depreciation | (18,464,066) |
Net unrealized appreciation (depreciation) | $98,569,299 |
As of 12/31/21 | |
Undistributed long-term capital gain | 51,376,055 |
Other temporary differences | 1,573 |
Net unrealized appreciation (depreciation) | 238,400,349 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $58,981,786 | |
Service Class | — | 29,086,470 | |
Total | $— | $88,068,256 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.70% |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 2,102,363 | $18,963,705 | 1,674,624 | $20,742,554 | |
Service Class | 2,401,521 | 19,857,140 | 2,631,304 | 29,113,983 | |
4,503,884 | $38,820,845 | 4,305,928 | $49,856,537 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 5,081,448 | $58,385,837 | |
Service Class | — | — | 2,840,476 | 29,086,470 | |
— | $— | 7,921,924 | $87,472,307 | ||
Shares reacquired | |||||
Initial Class | (1,437,199) | $(13,630,929) | (5,317,486) | $(66,831,580) | |
Service Class | (1,879,383) | (15,560,858) | (3,239,455) | (36,352,982) | |
(3,316,582) | $(29,191,787) | (8,556,941) | $(103,184,562) | ||
Net change | |||||
Initial Class | 665,164 | $5,332,776 | 1,438,586 | $12,296,811 | |
Service Class | 522,138 | 4,296,282 | 2,232,325 | 21,847,471 | |
1,187,302 | $9,629,058 | 3,670,911 | $34,144,282 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $5,353,682 | $29,492,195 | $26,048,526 | $— | $(536) | $8,796,815 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $17,642 | $— |
1 | |
2 | |
3 | |
4 | |
8 | |
9 | |
10 | |
11 | |
13 | |
19 | |
20 | |
20 | |
20 | |
20 |
ExlService Holdings, Inc. | 2.3% |
Syneos Health, Inc. | 2.1% |
Element Solutions, Inc. | 1.9% |
Hamilton Lane, Inc., “A” | 1.9% |
Sensata Technologies Holding PLC | 1.9% |
Axalta Coating Systems Ltd. | 1.8% |
Skechers USA, Inc., “A” | 1.8% |
WNS (Holdings) Ltd., ADR | 1.8% |
Advanced Energy Industries, Inc. | 1.7% |
EVO Payments, Inc., “A” | 1.7% |
Information Technology | 27.7% |
Health Care | 17.5% |
Industrials | 15.0% |
Consumer Discretionary | 11.4% |
Financials | 9.8% |
Materials | 5.4% |
Real Estate | 2.8% |
Energy | 2.4% |
Communication Services | 1.5% |
Consumer Staples | 1.2% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.87% | $1,000.00 | $682.40 | $3.63 |
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.48 | $4.36 | |
Service Class | Actual | 1.12% | $1,000.00 | $681.45 | $4.67 |
Hypothetical (h) | 1.12% | $1,000.00 | $1,019.24 | $5.61 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 94.7% | ||||
Aerospace & Defense – 2.0% | ||||
CACI International, Inc., “A” (a) | 35,268 | $ 9,937,817 | ||
Kratos Defense & Security Solutions, Inc. (a) | 242,052 | 3,359,682 | ||
$13,297,499 | ||||
Airlines – 0.8% | ||||
JetBlue Airways Corp. (a) | 597,206 | $ 4,998,614 | ||
Apparel Manufacturers – 2.3% | ||||
On Holding AG (a) | 162,077 | $ 2,867,142 | ||
Skechers USA, Inc., “A” (a) | 338,843 | 12,056,034 | ||
$14,923,176 | ||||
Automotive – 2.2% | ||||
Methode Electronics, Inc. | 174,049 | $ 6,446,775 | ||
Visteon Corp. (a) | 75,203 | 7,789,527 | ||
$14,236,302 | ||||
Biotechnology – 4.5% | ||||
Abcam PLC (a) | 404,390 | $ 5,798,871 | ||
Adaptive Biotechnologies Corp. (a) | 160,835 | 1,301,155 | ||
AlloVir, Inc. (a) | 163,000 | 635,700 | ||
BioAtla, Inc. (a) | 103,713 | 295,582 | ||
BioXcel Therapeutics, Inc. (a)(l) | 87,998 | 1,161,574 | ||
Immunocore Holdings PLC, ADR (a)(l) | 70,715 | 2,638,377 | ||
Lyell Immunopharma, Inc. (a) | 206,858 | 1,348,714 | ||
MaxCyte, Inc. (a) | 485,947 | 2,298,529 | ||
Neurocrine Biosciences, Inc. (a) | 43,637 | 4,253,735 | ||
Olink Holding AB (a)(l) | 103,121 | 1,567,439 | ||
Oxford Nanopore Technologies PLC (a) | 554,222 | 1,865,420 | ||
Prelude Therapeutics, Inc. (a) | 100,106 | 522,553 | ||
Recursion Pharmaceuticals, Inc. (a) | 269,580 | 2,194,381 | ||
Sana Biotechnology, Inc. (a) | 159,538 | 1,025,829 | ||
Twist Bioscience Corp. (a) | 75,530 | 2,640,529 | ||
$29,548,388 | ||||
Brokerage & Asset Managers – 4.9% | ||||
Focus Financial Partners, “A” (a) | 210,688 | $ 7,176,033 | ||
GCM Grosvenor, Inc., “A” (l) | 626,599 | 4,292,203 | ||
Hamilton Lane, Inc., “A” | 184,662 | 12,405,593 | ||
WisdomTree Investments, Inc. | 1,663,093 | 8,431,882 | ||
$32,305,711 | ||||
Business Services – 11.3% | ||||
Endava PLC, ADR (a) | 43,330 | $ 3,824,739 | ||
EVO Payments, Inc., “A” (a) | 483,022 | 11,360,678 | ||
ExlService Holdings, Inc. (a) | 100,894 | 14,864,713 | ||
Keywords Studios PLC | 342,786 | 9,154,981 | ||
Payoneer Global, Inc. (a) | 1,053,921 | 4,131,370 | ||
Remitly Global, Inc. (a) | 776,949 | 5,951,429 | ||
TaskUs, Inc., “A” (a) | 330,269 | 5,568,335 | ||
Thoughtworks Holding, Inc. (a) | 584,154 | 8,242,413 | ||
WNS (Holdings) Ltd., ADR (a) | 154,895 | 11,561,363 | ||
$74,660,021 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Chemicals – 3.5% | ||||
Element Solutions, Inc. | 703,354 | $ 12,519,701 | ||
Ingevity Corp. (a) | 169,172 | 10,681,520 | ||
$23,201,221 | ||||
Computer Software – 8.9% | ||||
Alkami Technology, Inc. (a)(l) | 472,191 | $ 6,558,733 | ||
Avalara, Inc. (a) | 62,830 | 4,435,798 | ||
Definitive Healthcare Corp. (a) | 195,329 | 4,478,894 | ||
DoubleVerify Holdings, Inc. (a) | 280,191 | 6,351,930 | ||
Everbridge, Inc. (a) | 99,219 | 2,767,218 | ||
Expensify, Inc., “A” (a)(l) | 219,452 | 3,904,051 | ||
nCino, Inc. (a) | 95,748 | 2,960,528 | ||
Open Lending Corp., “A” (a) | 546,182 | 5,587,442 | ||
Paycor HCM, Inc. (a) | 296,195 | 7,701,070 | ||
Paylocity Holding Corp. (a) | 17,629 | 3,074,850 | ||
Procore Technologies, Inc. (a) | 124,471 | 5,649,739 | ||
Sabre Corp. (a) | 866,521 | 5,051,817 | ||
$58,522,070 | ||||
Computer Software - Systems – 4.3% | ||||
Five9, Inc. (a) | 63,654 | $ 5,801,425 | ||
Nuvei Corp. (a) | 83,041 | 3,003,593 | ||
Q2 Holdings, Inc. (a) | 242,710 | 9,361,325 | ||
Rapid7, Inc. (a) | 156,029 | 10,422,737 | ||
$28,589,080 | ||||
Construction – 2.2% | ||||
AZEK Co., Inc. (a) | 658,964 | $ 11,031,057 | ||
Trex Co., Inc. (a) | 62,405 | 3,396,080 | ||
�� | $14,427,137 | |||
Consumer Services – 2.6% | ||||
Boyd Group Services, Inc. | 59,828 | $ 6,444,803 | ||
Bright Horizons Family Solutions, Inc. (a) | 67,932 | 5,741,613 | ||
European Wax Center, Inc., “A” | 209,594 | 3,693,046 | ||
F45 Training Holdings, Inc. (a) | 384,473 | 1,510,979 | ||
$17,390,441 | ||||
Electrical Equipment – 4.2% | ||||
Advanced Drainage Systems, Inc. | 74,696 | $ 6,727,869 | ||
Littlefuse, Inc. | 34,025 | 8,643,711 | ||
Sensata Technologies Holding PLC | 297,141 | 12,274,894 | ||
$27,646,474 | ||||
Electronics – 1.7% | ||||
Advanced Energy Industries, Inc. | 157,205 | $ 11,472,821 | ||
Energy - Independent – 1.4% | ||||
Magnolia Oil & Gas Corp., “A” | 426,000 | $ 8,941,740 | ||
Energy - Renewables – 0.6% | ||||
Shoals Technologies Group, Inc. (a) | 241,799 | $ 3,984,848 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Entertainment – 2.0% | ||||
Manchester United PLC, “A” | 764,999 | $ 8,506,789 | ||
Vivid Seats, Inc., “A” (l) | 659,580 | 4,927,062 | ||
$13,433,851 | ||||
Food & Beverages – 1.2% | ||||
Duckhorn Portfolio, Inc. (a) | 271,965 | $ 5,727,583 | ||
Oatly Group AB, ADR (a)(l) | 609,304 | 2,108,192 | ||
$7,835,775 | ||||
Gaming & Lodging – 1.3% | ||||
Genius Sports Ltd. (a) | 760,945 | $ 1,712,126 | ||
Penn National Gaming, Inc. (a) | 219,944 | 6,690,697 | ||
$8,402,823 | ||||
General Merchandise – 0.7% | ||||
Ollie's Bargain Outlet Holdings, Inc. (a) | 77,123 | $ 4,530,976 | ||
Leisure & Toys – 1.9% | ||||
Brunswick Corp. | 124,840 | $ 8,162,039 | ||
Corsair Gaming, Inc. (a) | 333,742 | 4,382,033 | ||
$12,544,072 | ||||
Machinery & Tools – 1.8% | ||||
Hydrofarm Holdings Group, Inc. (a) | 309,831 | $ 1,078,212 | ||
Ritchie Bros. Auctioneers, Inc. | 163,681 | 10,649,086 | ||
$11,727,298 | ||||
Medical & Health Technology & Services – 4.8% | ||||
Certara, Inc. (a) | 424,996 | $ 9,120,414 | ||
Guardant Health, Inc. (a) | 39,737 | 1,602,991 | ||
HealthEquity, Inc. (a) | 113,364 | 6,959,416 | ||
Syneos Health, Inc. (a) | 192,649 | 13,809,080 | ||
$31,491,901 | ||||
Medical Equipment – 5.1% | ||||
Bruker BioSciences Corp. | 130,092 | $ 8,164,574 | ||
Envista Holdings Corp. (a) | 116,002 | 4,470,717 | ||
Gerresheimer AG | 119,846 | 7,786,742 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 188,901 | 5,366,677 | ||
OptiNose, Inc. (a)(l) | 387,967 | 1,419,959 | ||
Outset Medical, Inc. (a) | 98,673 | 1,466,281 | ||
PROCEPT BioRobotics Corp. (a)(l) | 69,658 | 2,277,120 | ||
Silk Road Medical, Inc. (a) | 77,445 | 2,818,224 | ||
$33,770,294 | ||||
Oil Services – 1.0% | ||||
ChampionX Corp. | 347,096 | $ 6,889,856 | ||
Other Banks & Diversified Financials – 4.1% | ||||
First Interstate BancSystem, Inc. | 286,997 | $ 10,937,456 | ||
Prosperity Bancshares, Inc. | 144,639 | 9,874,504 | ||
United Community Bank, Inc. | 196,487 | 5,931,943 | ||
$26,743,903 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – 1.4% | ||||
Annexon, Inc. (a) | 155,034 | $ 584,478 | ||
Collegium Pharmaceutical, Inc. (a) | 159,941 | 2,834,155 | ||
Harmony Biosciences Holdings (a) | 79,120 | 3,858,682 | ||
SpringWorks Therapeutics, Inc. (a) | 84,641 | 2,083,861 | ||
$9,361,176 | ||||
Pollution Control – 1.4% | ||||
GFL Environmental, Inc. | 345,972 | $ 8,926,078 | ||
Real Estate – 2.8% | ||||
Big Yellow Group PLC, REIT | 313,094 | $ 5,000,418 | ||
Innovative Industrial Properties, Inc., REIT | 34,241 | 3,762,058 | ||
STAG Industrial, Inc., REIT | 317,710 | 9,810,885 | ||
$18,573,361 | ||||
Specialty Chemicals – 1.8% | ||||
Axalta Coating Systems Ltd. (a) | 548,636 | $ 12,130,342 | ||
Specialty Stores – 3.4% | ||||
ACV Auctions, Inc. (a) | 780,462 | $ 5,104,221 | ||
Leslie's, Inc. (a) | 649,603 | 9,860,974 | ||
Petco Health & Wellness Co., Inc. (a) | 518,611 | 7,644,326 | ||
$22,609,521 | ||||
Trucking – 2.6% | ||||
CryoPort, Inc. (a) | 213,194 | $ 6,604,750 | ||
Knight-Swift Transportation Holdings, Inc. | 165,295 | 7,651,506 | ||
Saia, Inc. (a) | 16,599 | 3,120,612 | ||
$17,376,868 | ||||
Total Common Stocks (Identified Cost, $766,338,146) | $624,493,638 | |||
Investment Companies (h) – 5.4% | ||||
Money Market Funds – 5.4% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $35,266,011) | 35,266,510 | $ 35,262,984 | ||
Collateral for Securities Loaned – 0.7% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 1.55% (j) (Identified Cost, $4,600,580) | 4,600,580 | $ 4,600,580 | ||
Other Assets, Less Liabilities – (0.8)% | (5,001,209) | |||
Net Assets – 100.0% | $659,355,993 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $35,262,984 and $629,094,218, respectively. | |||
(j) | The rate quoted is the annualized seven-day yield of the fund at period end. | |||
(l) | A portion of this security is on loan. See Note 2 for additional information. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value, including $5,996,797 of securities on loan (identified cost, $770,938,726) | $629,094,218 |
Investments in affiliated issuers, at value (identified cost, $35,266,011) | 35,262,984 |
Receivables for | |
Fund shares sold | 166,111 |
Interest and dividends | 492,668 |
Receivable from investment adviser | 16,906 |
Other assets | 1,532 |
Total assets | $665,034,419 |
Liabilities | |
Payables for | |
Fund shares reacquired | $851,316 |
Collateral for securities loaned, at value (c) | 4,600,580 |
Payable to affiliates | |
Administrative services fee | 667 |
Shareholder servicing costs | 759 |
Distribution and/or service fees | 5,158 |
Payable for independent Trustees' compensation | 787 |
Accrued expenses and other liabilities | 219,159 |
Total liabilities | $5,678,426 |
Net assets | $659,355,993 |
Net assets consist of | |
Paid-in capital | $613,515,159 |
Total distributable earnings (loss) | 45,840,834 |
Net assets | $659,355,993 |
Shares of beneficial interest outstanding | 45,561,918 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $289,210,542 | 18,185,514 | $15.90 |
Service Class | 370,145,451 | 27,376,404 | 13.52 |
(c) | Non-cash collateral is not included. |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $2,416,266 |
Income on securities loaned | 103,185 |
Other | 69,761 |
Dividends from affiliated issuers | 53,546 |
Foreign taxes withheld | (44,263) |
Total investment income | $2,598,495 |
Expenses | |
Management fee | $3,553,804 |
Distribution and/or service fees | 567,164 |
Shareholder servicing costs | 21,904 |
Administrative services fee | 64,015 |
Independent Trustees' compensation | 7,134 |
Custodian fee | 26,882 |
Shareholder communications | 39,972 |
Audit and tax fees | 31,791 |
Legal fees | 2,350 |
Miscellaneous | 20,175 |
Total expenses | $4,335,191 |
Reduction of expenses by investment adviser | (329,539) |
Net expenses | $4,005,652 |
Net investment income (loss) | $(1,407,157) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(44,330,528) |
Affiliated issuers | (341) |
Foreign currency | (12,162) |
Net realized gain (loss) | $(44,343,031) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(271,964,772) |
Affiliated issuers | (3,027) |
Translation of assets and liabilities in foreign currencies | (12,965) |
Net unrealized gain (loss) | $(271,980,764) |
Net realized and unrealized gain (loss) | $(316,323,795) |
Change in net assets from operations | $(317,730,952) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(1,407,157) | $(5,975,158) |
Net realized gain (loss) | (44,343,031) | 250,738,974 |
Net unrealized gain (loss) | (271,980,764) | (225,003,293) |
Change in net assets from operations | $(317,730,952) | $19,760,523 |
Total distributions to shareholders | $— | $(180,031,167) |
Change in net assets from fund share transactions | $(28,197,108) | $114,963,905 |
Total change in net assets | $(345,928,060) | $(45,306,739) |
Net assets | ||
At beginning of period | 1,005,284,053 | 1,050,590,792 |
At end of period | $659,355,993 | $1,005,284,053 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $23.30 | $26.96 | $20.28 | $17.46 | $20.10 | $16.18 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.02) | $(0.11) | $(0.06) | $(0.07) | $(0.09) | $(0.07) |
Net realized and unrealized gain (loss) | (7.38) | 0.92 | 8.84 | 6.89 | 0.35 | 4.34 |
Total from investment operations | $(7.40) | $0.81 | $8.78 | $6.82 | $0.26 | $4.27 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $(4.47) | $(2.10) | $(4.00) | $(2.90) | $(0.35) |
Net asset value, end of period (x) | $15.90 | $23.30 | $26.96 | $20.28 | $17.46 | $20.10 |
Total return (%) (k)(r)(s)(x) | (31.76)(n) | 1.80 | 45.89 | 41.70 | (1.48) | 26.65 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.95(a) | 0.94 | 0.95 | 0.95 | 0.96 | 0.97 |
Expenses after expense reductions | 0.87(a) | 0.87 | 0.91 | 0.94 | 0.94 | 0.94 |
Net investment income (loss) | (0.21)(a) | (0.42) | (0.30) | (0.33) | (0.43) | (0.37) |
Portfolio turnover | 24(n) | 79 | 80 | 54 | 71 | 58 |
Net assets at end of period (000 omitted) | $289,211 | $433,168 | $465,663 | $343,133 | $272,039 | $316,949 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $19.84 | $23.61 | $18.02 | $15.91 | $18.57 | $15.01 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.04) | $(0.16) | $(0.10) | $(0.11) | $(0.13) | $(0.10) |
Net realized and unrealized gain (loss) | (6.28) | 0.86 | 7.79 | 6.22 | 0.37 | 4.01 |
Total from investment operations | $(6.32) | $0.70 | $7.69 | $6.11 | $0.24 | $3.91 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $(4.47) | $(2.10) | $(4.00) | $(2.90) | $(0.35) |
Net asset value, end of period (x) | $13.52 | $19.84 | $23.61 | $18.02 | $15.91 | $18.57 |
Total return (%) (k)(r)(s)(x) | (31.85)(n) | 1.57 | 45.58 | 41.27 | (1.72) | 26.33 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.20(a) | 1.19 | 1.20 | 1.20 | 1.21 | 1.22 |
Expenses after expense reductions | 1.12(a) | 1.12 | 1.16 | 1.19 | 1.19 | 1.19 |
Net investment income (loss) | (0.46)(a) | (0.66) | (0.56) | (0.58) | (0.68) | (0.62) |
Portfolio turnover | 24(n) | 79 | 80 | 54 | 71 | 58 |
Net assets at end of period (000 omitted) | $370,145 | $572,116 | $584,928 | $472,393 | $358,912 | $432,897 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $624,493,638 | $— | $— | $624,493,638 |
Mutual Funds | 39,863,564 | — | — | 39,863,564 |
Total | $664,357,202 | $— | $— | $664,357,202 |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $67,762,150 |
Long-term capital gains | 112,269,017 |
Total distributions | $180,031,167 |
As of 6/30/22 | |
Cost of investments | $818,608,423 |
Gross appreciation | 60,655,930 |
Gross depreciation | (214,907,151) |
Net unrealized appreciation (depreciation) | $(154,251,221) |
As of 12/31/21 | |
Undistributed ordinary income | 79,284,962 |
Undistributed long-term capital gain | 166,256,683 |
Other temporary differences | 3,022 |
Net unrealized appreciation (depreciation) | 118,027,119 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $72,327,744 | |
Service Class | — | 107,703,423 | |
Total | $— | $180,031,167 |
Up to $1 billion | 0.90% |
In excess of $1 billion | 0.80% |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,262,735 | $24,111,635 | 1,685,787 | $45,986,516 | |
Service Class | 9,459,821 | 146,950,864 | 5,330,620 | 125,627,263 | |
10,722,556 | $171,062,499 | 7,016,407 | $171,613,779 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 2,879,289 | $72,327,744 | |
Service Class | — | — | 5,030,520 | 107,703,423 | |
— | $— | 7,909,809 | $180,031,167 | ||
Shares reacquired | |||||
Initial Class | (1,667,049) | $(32,346,572) | (3,248,656) | $(88,338,013) | |
Service Class | (10,923,663) | (166,913,035) | (6,295,130) | (148,343,028) | |
(12,590,712) | $(199,259,607) | (9,543,786) | $(236,681,041) | ||
Net change | |||||
Initial Class | (404,314) | $(8,234,937) | 1,316,420 | $29,976,247 | |
Service Class | (1,463,842) | (19,962,171) | 4,066,010 | 84,987,658 | |
(1,868,156) | $(28,197,108) | 5,382,430 | $114,963,905 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $34,793,849 | $142,397,359 | $141,924,856 | $(341) | $(3,027) | $35,262,984 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $53,546 | $— |
1 | |
2 | |
3 | |
4 | |
9 | |
10 | |
11 | |
12 | |
14 | |
21 | |
22 | |
22 | |
22 | |
22 |
Microsoft Corp. | 7.1% |
Alphabet, Inc., “A” | 4.6% |
Amazon.com, Inc. | 3.5% |
Apple, Inc. | 3.2% |
Visa, Inc., “A” | 2.4% |
Accenture PLC, “A” | 1.5% |
Danaher Corp. | 1.5% |
ConocoPhillips | 1.5% |
JPMorgan Chase & Co. | 1.5% |
Merck & Co., Inc. | 1.4% |
Technology | 29.9% |
Health Care | 15.5% |
Financial Services | 13.6% |
Capital Goods | 13.1% |
Consumer Cyclicals | 11.2% |
Energy | 7.5% |
Consumer Staples | 5.3% |
Telecommunications/Cable Television (s) | 2.8% |
(k) | The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology. |
(s) | Includes securities sold short. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.79% | $1,000.00 | $805.39 | $3.54 |
Hypothetical (h) | 0.79% | $1,000.00 | $1,020.88 | $3.96 | |
Service Class | Actual | 1.04% | $1,000.00 | $804.33 | $4.65 |
Hypothetical (h) | 1.04% | $1,000.00 | $1,019.64 | $5.21 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Expense ratios include 0.02% of investment related expenses from short sales (See Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.5% | ||||
Aerospace & Defense – 4.3% | ||||
General Dynamics Corp. | 13,408 | $ 2,966,520 | ||
Honeywell International, Inc. | 39,238 | 6,819,957 | ||
Howmet Aerospace, Inc. | 120,954 | 3,804,003 | ||
L3Harris Technologies, Inc. | 17,661 | 4,268,664 | ||
Northrop Grumman Corp. | 10,000 | 4,785,700 | ||
Raytheon Technologies Corp. | 76,387 | 7,341,554 | ||
$29,986,398 | ||||
Alcoholic Beverages – 0.7% | ||||
Constellation Brands, Inc., “A” | 20,106 | $ 4,685,904 | ||
Apparel Manufacturers – 0.9% | ||||
NIKE, Inc., “B” | 61,950 | $ 6,331,290 | ||
Automotive – 0.3% | ||||
Aptiv PLC (a) | 27,129 | $ 2,416,380 | ||
Biotechnology – 0.2% | ||||
Illumina, Inc. (a) | 8,750 | $ 1,613,150 | ||
Broadcasting – 0.2% | ||||
Warner Bros. Discovery, Inc. (a) | 80,849 | $ 1,084,994 | ||
Brokerage & Asset Managers – 1.9% | ||||
Charles Schwab Corp. | 146,617 | $ 9,263,262 | ||
CME Group, Inc. | 18,714 | 3,830,756 | ||
$13,094,018 | ||||
Business Services – 4.3% | ||||
Accenture PLC, “A” | 38,927 | $ 10,808,081 | ||
Cognizant Technology Solutions Corp., “A” | 59,663 | 4,026,656 | ||
Fidelity National Information Services, Inc. | 59,580 | 5,461,699 | ||
Fiserv, Inc. (a) | 67,043 | 5,964,816 | ||
Global Payments, Inc. | 26,782 | 2,963,160 | ||
Thoughtworks Holding, Inc. (a) | 79,507 | 1,121,844 | ||
$30,346,256 | ||||
Cable TV – 1.5% | ||||
Cable One, Inc. | 2,631 | $ 3,392,201 | ||
Charter Communications, Inc., “A” (a) | 14,585 | 6,833,510 | ||
$10,225,711 | ||||
Computer Software – 12.6% | ||||
Adobe Systems, Inc. (a) | 27,653 | $ 10,122,657 | ||
Atlassian Corp. PLC, “A” (a) | 15,751 | 2,951,737 | ||
Black Knight, Inc. (a) | 69,057 | 4,515,637 | ||
Cadence Design Systems, Inc. (a) | 46,191 | 6,930,036 | ||
Elastic N.V. (a) | 28,501 | 1,928,663 | ||
Microsoft Corp. (s) | 193,990 | 49,822,452 | ||
NICE Systems Ltd., ADR (a) | 14,452 | 2,781,287 | ||
Salesforce, Inc. (a) | 56,476 | 9,320,799 | ||
$88,373,268 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software - Systems – 4.0% | ||||
Apple, Inc. (s) | 165,433 | $ 22,618,000 | ||
Constellation Software, Inc. | 3,544 | 5,261,127 | ||
$27,879,127 | ||||
Construction – 2.1% | ||||
AZEK Co., Inc. (a) | 86,418 | $ 1,446,637 | ||
Masco Corp. | 72,047 | 3,645,578 | ||
Otis Worldwide Corp. | 35,444 | 2,504,828 | ||
Sherwin-Williams Co. | 17,596 | 3,939,920 | ||
Vulcan Materials Co. | 23,195 | 3,296,010 | ||
$14,832,973 | ||||
Consumer Products – 1.4% | ||||
Colgate-Palmolive Co. | 71,187 | $ 5,704,926 | ||
Kimberly-Clark Corp. | 31,754 | 4,291,553 | ||
$9,996,479 | ||||
Consumer Services – 0.3% | ||||
Bright Horizons Family Solutions, Inc. (a) | 26,815 | $ 2,266,404 | ||
Electrical Equipment – 1.4% | ||||
Johnson Controls International PLC | 112,929 | $ 5,407,040 | ||
TE Connectivity Ltd. | 33,032 | 3,737,571 | ||
Vertiv Holdings Co. | 103,889 | 853,968 | ||
$9,998,579 | ||||
Electronics – 2.5% | ||||
Applied Materials, Inc. | 66,572 | $ 6,056,721 | ||
Lam Research Corp. | 10,029 | 4,273,858 | ||
NXP Semiconductors N.V. | 48,506 | 7,180,343 | ||
$17,510,922 | ||||
Energy - Independent – 3.9% | ||||
ConocoPhillips | 117,268 | $ 10,531,839 | ||
Diamondback Energy, Inc. | 32,156 | 3,895,699 | ||
Hess Corp. | 53,996 | 5,720,336 | ||
Pioneer Natural Resources Co. | 18,480 | 4,122,519 | ||
Valero Energy Corp. | 32,467 | 3,450,593 | ||
$27,720,986 | ||||
Energy - Renewables – 0.1% | ||||
Generac Holdings, Inc. (a) | 4,890 | $ 1,029,736 | ||
Food & Beverages – 2.5% | ||||
Hostess Brands, Inc. (a) | 77,368 | $ 1,640,975 | ||
Mondelez International, Inc. | 95,528 | 5,931,334 | ||
Oatly Group AB, ADR (a)(l) | 255,975 | 885,673 | ||
PepsiCo, Inc. | 53,845 | 8,973,808 | ||
$17,431,790 | ||||
Gaming & Lodging – 0.4% | ||||
Marriott International, Inc., “A” | 20,062 | $ 2,728,633 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
General Merchandise – 1.3% | ||||
Dollar General Corp. | 18,567 | $ 4,557,084 | ||
Dollar Tree, Inc. (a) | 30,787 | 4,798,154 | ||
$9,355,238 | ||||
Health Maintenance Organizations – 2.0% | ||||
Cigna Corp. | 34,656 | $ 9,132,549 | ||
Humana, Inc. | 10,274 | 4,808,951 | ||
$13,941,500 | ||||
Insurance – 2.9% | ||||
Aon PLC | 27,564 | $ 7,433,460 | ||
Chubb Ltd. | 30,342 | 5,964,630 | ||
Reinsurance Group of America, Inc. | 30,066 | 3,526,441 | ||
Willis Towers Watson PLC | 19,185 | 3,786,927 | ||
$20,711,458 | ||||
Internet – 6.0% | ||||
Alphabet, Inc., “A” (a)(s) | 14,970 | $ 32,623,522 | ||
Alphabet, Inc., “C” (a) | 2,329 | 5,094,571 | ||
Meta Platforms, Inc., “A” (a) | 26,681 | 4,302,312 | ||
$42,020,405 | ||||
Leisure & Toys – 1.0% | ||||
Electronic Arts, Inc. | 56,309 | $ 6,849,990 | ||
Machinery & Tools – 1.9% | ||||
Ingersoll Rand, Inc. | 128,561 | $ 5,409,847 | ||
PACCAR, Inc. | 38,691 | 3,185,817 | ||
Roper Technologies, Inc. | 12,243 | 4,831,700 | ||
$13,427,364 | ||||
Major Banks – 3.4% | ||||
JPMorgan Chase & Co. (s) | 91,816 | $ 10,339,400 | ||
Morgan Stanley | 94,904 | 7,218,398 | ||
PNC Financial Services Group, Inc. | 42,223 | 6,661,523 | ||
$24,219,321 | ||||
Medical & Health Technology & Services – 1.6% | ||||
ICON PLC (a) | 22,952 | $ 4,973,698 | ||
McKesson Corp. | 18,632 | 6,077,945 | ||
$11,051,643 | ||||
Medical Equipment – 5.8% | ||||
Becton, Dickinson and Co. | 21,929 | $ 5,406,157 | ||
Boston Scientific Corp. (a) | 177,986 | 6,633,538 | ||
Danaher Corp. | 42,213 | 10,701,840 | ||
Envista Holdings Corp. (a) | 88,711 | 3,418,922 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 115,135 | 3,270,985 | ||
Medtronic PLC | 70,052 | 6,287,167 | ||
STERIS PLC | 22,920 | 4,724,958 | ||
$40,443,567 | ||||
Natural Gas - Pipeline – 0.2% | ||||
Enterprise Products Partners LP | 68,497 | $ 1,669,272 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Network & Telecom – 0.5% | ||||
Equinix, Inc., REIT | 5,845 | $ 3,840,282 | ||
Other Banks & Diversified Financials – 4.5% | ||||
Moody's Corp. | 12,381 | $ 3,367,261 | ||
Northern Trust Corp. | 37,365 | 3,604,975 | ||
Truist Financial Corp. | 162,667 | 7,715,296 | ||
Visa, Inc., “A” | 84,907 | 16,717,339 | ||
$31,404,871 | ||||
Pharmaceuticals – 6.0% | ||||
Eli Lilly & Co. | 30,828 | $ 9,995,362 | ||
Johnson & Johnson | 41,508 | 7,368,085 | ||
Merck & Co., Inc. | 111,627 | 10,177,034 | ||
Vertex Pharmaceuticals, Inc. (a) | 33,509 | 9,442,501 | ||
Zoetis, Inc. | 28,937 | 4,973,981 | ||
$41,956,963 | ||||
Railroad & Shipping – 1.4% | ||||
Canadian Pacific Railway Ltd. | 97,544 | $ 6,812,473 | ||
CSX Corp. | 103,656 | 3,012,243 | ||
$9,824,716 | ||||
Real Estate – 0.9% | ||||
Extra Space Storage, Inc., REIT | 17,242 | $ 2,933,209 | ||
STORE Capital Corp., REIT | 131,661 | 3,433,719 | ||
$6,366,928 | ||||
Restaurants – 1.4% | ||||
Starbucks Corp. | 84,590 | $ 6,461,830 | ||
Wendy's Co. | 161,040 | 3,040,435 | ||
$9,502,265 | ||||
Specialty Chemicals – 1.6% | ||||
Air Products & Chemicals, Inc. | 15,396 | $ 3,702,430 | ||
Axalta Coating Systems Ltd. (a) | 130,214 | 2,879,032 | ||
DuPont de Nemours, Inc. | 86,856 | 4,827,456 | ||
$11,408,918 | ||||
Specialty Stores – 5.7% | ||||
Amazon.com, Inc. (a)(s) | 228,937 | $ 24,315,399 | ||
Home Depot, Inc. | 31,175 | 8,550,367 | ||
Ross Stores, Inc. | 53,882 | 3,784,133 | ||
Target Corp. | 26,587 | 3,754,882 | ||
$40,404,781 | ||||
Telecommunications - Wireless – 2.0% | ||||
SBA Communications Corp., REIT | 28,066 | $ 8,982,523 | ||
T-Mobile US, Inc. (a) | 35,788 | 4,814,918 | ||
$13,797,441 | ||||
Tobacco – 0.7% | ||||
Philip Morris International, Inc. | 53,128 | $ 5,245,859 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – 3.2% | ||||
American Electric Power Co., Inc. | 34,749 | $ 3,333,819 | ||
Duke Energy Corp. | 56,354 | 6,041,712 | ||
NextEra Energy, Inc. | 72,318 | 5,601,752 | ||
PG&E Corp. (a) | 240,761 | 2,402,795 | ||
Southern Co. | 70,595 | 5,034,130 | ||
$22,414,208 | ||||
Total Common Stocks (Identified Cost, $497,572,875) | $699,409,988 | |||
Investment Companies (h) – 1.1% | ||||
Money Market Funds – 1.1% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $7,632,261) | 7,632,270 | $ 7,631,506 | ||
Collateral for Securities Loaned – 0.0% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 1.55% (j) (Identified Cost, $172,470) | 172,470 | $ 172,470 | ||
Securities Sold Short – (0.6)% | ||||
Telecommunications - Wireless – (0.6)% | ||||
Crown Castle International Corp., REIT (Proceeds Received, $2,964,530) | (23,778) | $ (4,003,740) | ||
Other Assets, Less Liabilities – (0.0)% | (343,461) | |||
Net Assets – 100.0% | $702,866,763 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $7,631,506 and $699,582,458, respectively. | |||
(j) | The rate quoted is the annualized seven-day yield of the fund at period end. | |||
(l) | A portion of this security is on loan. See Note 2 for additional information. | |||
(s) | Security or a portion of the security was pledged to cover collateral requirements for securities sold short. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value, including $159,132 of securities on loan (identified cost, $497,745,345) | $699,582,458 |
Investments in affiliated issuers, at value (identified cost, $7,632,261) | 7,631,506 |
Deposits with brokers for | |
Securities sold short | 552,783 |
Receivables for | |
Investments sold | 1,225,603 |
Fund shares sold | 41,369 |
Interest and dividends | 653,903 |
Other assets | 1,329 |
Total assets | $709,688,951 |
Liabilities | |
Payables for | |
Securities sold short, at value (proceeds received, $2,964,530) | $4,003,740 |
Investments purchased | 1,889,866 |
Fund shares reacquired | 612,203 |
Collateral for securities loaned, at value | 172,470 |
Payable to affiliates | |
Investment adviser | 21,460 |
Administrative services fee | 702 |
Shareholder servicing costs | 479 |
Distribution and/or service fees | 4,201 |
Accrued expenses and other liabilities | 117,067 |
Total liabilities | $6,822,188 |
Net assets | $702,866,763 |
Net assets consist of | |
Paid-in capital | $384,709,591 |
Total distributable earnings (loss) | 318,157,172 |
Net assets | $702,866,763 |
Shares of beneficial interest outstanding | 22,797,963 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $399,152,806 | 12,841,102 | $31.08 |
Service Class | 303,713,957 | 9,956,861 | 30.50 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $4,742,525 |
Other | 7,923 |
Dividends from affiliated issuers | 4,938 |
Income on securities loaned | 382 |
Foreign taxes withheld | (16,851) |
Total investment income | $4,738,917 |
Expenses | |
Management fee | $2,672,759 |
Distribution and/or service fees | 432,441 |
Shareholder servicing costs | 17,727 |
Administrative services fee | 58,641 |
Independent Trustees' compensation | 6,057 |
Custodian fee | 18,190 |
Shareholder communications | 14,648 |
Audit and tax fees | 31,957 |
Legal fees | 1,725 |
Dividend and interest expense on securities sold short | 82,200 |
Interest expense and fees | 1,452 |
Miscellaneous | 16,726 |
Total expenses | $3,354,523 |
Reduction of expenses by investment adviser | (97,370) |
Net expenses | $3,257,153 |
Net investment income (loss) | $1,481,764 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $17,909,552 |
Affiliated issuers | (825) |
Foreign currency | 1,502 |
Net realized gain (loss) | $17,910,229 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(176,411,322) |
Affiliated issuers | (763) |
Securities sold short | 567,486 |
Translation of assets and liabilities in foreign currencies | (54) |
Net unrealized gain (loss) | $(175,844,653) |
Net realized and unrealized gain (loss) | $(157,934,424) |
Change in net assets from operations | $(156,452,660) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $1,481,764 | $1,718,115 |
Net realized gain (loss) | 17,910,229 | 96,790,234 |
Net unrealized gain (loss) | (175,844,653) | 71,595,011 |
Change in net assets from operations | $(156,452,660) | $170,103,360 |
Total distributions to shareholders | $— | $(46,739,322) |
Change in net assets from fund share transactions | $77,453,393 | $(89,224,453) |
Total change in net assets | $(78,999,267) | $34,139,585 |
Net assets | ||
At beginning of period | 781,866,030 | 747,726,445 |
At end of period | $702,866,763 | $781,866,030 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $38.59 | $32.87 | $29.49 | $24.93 | $29.50 | $26.00 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.10 | $0.13 | $0.18 | $0.23 | $0.26 | $0.20 |
Net realized and unrealized gain (loss) | (7.61) | 7.92 | 4.62 | 7.66 | (1.04) | 5.67 |
Total from investment operations | $(7.51) | $8.05 | $4.80 | $7.89 | $(0.78) | $5.87 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.20) | $(0.22) | $(0.24) | $(0.22) | $(0.40) |
From net realized gain | — | (2.13) | (1.20) | (3.09) | (3.57) | (1.97) |
Total distributions declared to shareholders | $— | $(2.33) | $(1.42) | $(3.33) | $(3.79) | $(2.37) |
Net asset value, end of period (x) | $31.08 | $38.59 | $32.87 | $29.49 | $24.93 | $29.50 |
Total return (%) (k)(r)(s)(x) | (19.46)(n) | 24.80 | 16.59 | 32.95 | (4.37) | 23.37 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.82(a) | 0.80 | 0.82 | 0.83 | 0.82 | 0.83 |
Expenses after expense reductions | 0.79(a) | 0.78 | 0.79 | 0.81 | 0.81 | 0.81 |
Net investment income (loss) | 0.56(a) | 0.35 | 0.62 | 0.82 | 0.88 | 0.70 |
Portfolio turnover | 10(n) | 19 | 39 | 35 | 31 | 37 |
Net assets at end of period (000 omitted) | $399,153 | $384,928 | $372,405 | $361,842 | $319,422 | $394,867 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 0.77(a) | 0.77 | 0.77 | 0.78 | 0.79 | 0.79 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $37.92 | $32.34 | $29.05 | $24.61 | $29.17 | $25.73 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.04 | $0.04 | $0.11 | $0.16 | $0.18 | $0.13 |
Net realized and unrealized gain (loss) | (7.46) | 7.79 | 4.54 | 7.55 | (1.03) | 5.61 |
Total from investment operations | $(7.42) | $7.83 | $4.65 | $7.71 | $(0.85) | $5.74 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.12) | $(0.16) | $(0.18) | $(0.14) | $(0.33) |
From net realized gain | — | (2.13) | (1.20) | (3.09) | (3.57) | (1.97) |
Total distributions declared to shareholders | $— | $(2.25) | $(1.36) | $(3.27) | $(3.71) | $(2.30) |
Net asset value, end of period (x) | $30.50 | $37.92 | $32.34 | $29.05 | $24.61 | $29.17 |
Total return (%) (k)(r)(s)(x) | (19.57)(n) | 24.51 | 16.31 | 32.60 | (4.62) | 23.07 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.07(a) | 1.05 | 1.07 | 1.08 | 1.07 | 1.08 |
Expenses after expense reductions | 1.04(a) | 1.03 | 1.04 | 1.06 | 1.06 | 1.06 |
Net investment income (loss) | 0.26(a) | 0.10 | 0.37 | 0.57 | 0.63 | 0.47 |
Portfolio turnover | 10(n) | 19 | 39 | 35 | 31 | 37 |
Net assets at end of period (000 omitted) | $303,714 | $396,938 | $375,322 | $319,842 | $215,898 | $228,102 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 1.02(a) | 1.02 | 1.02 | 1.03 | 1.04 | 1.04 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $699,409,988 | $— | $— | $699,409,988 |
Mutual Funds | 7,803,976 | — | — | 7,803,976 |
Total | $707,213,964 | $— | $— | $707,213,964 |
Securities Sold Short | $(4,003,740) | $— | $— | $(4,003,740) |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $6,675,285 |
Long-term capital gains | 40,064,037 |
Total distributions | $46,739,322 |
As of 6/30/22 | |
Cost of investments | $507,873,257 |
Gross appreciation | 230,483,973 |
Gross depreciation | (31,143,266) |
Net unrealized appreciation (depreciation) | $199,340,707 |
As of 12/31/21 | |
Undistributed ordinary income | 13,039,388 |
Undistributed long-term capital gain | 85,615,313 |
Other temporary differences | 1,809,035 |
Net unrealized appreciation (depreciation) | 374,146,096 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $23,181,009 | |
Service Class | — | 23,558,313 | |
Total | $— | $46,739,322 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.65% |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 3,633,787 | $120,965,585 | 297,691 | $10,769,839 | |
Service Class | 336,268 | 11,193,080 | 359,379 | 12,740,685 | |
3,970,055 | $132,158,665 | 657,070 | $23,510,524 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 625,837 | $23,181,009 | |
Service Class | — | — | 646,851 | 23,558,313 | |
— | $— | 1,272,688 | $46,739,322 | ||
Shares reacquired | |||||
Initial Class | (766,304) | $(26,268,345) | (2,278,729) | $(82,861,036) | |
Service Class | (847,434) | (28,436,927) | (2,142,388) | (76,613,263) | |
(1,613,738) | $(54,705,272) | (4,421,117) | $(159,474,299) |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | 2,867,483 | $94,697,240 | (1,355,201) | $(48,910,188) | |
Service Class | (511,166) | (17,243,847) | (1,136,158) | (40,314,265) | |
2,356,317 | $77,453,393 | (2,491,359) | $(89,224,453) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $5,954,476 | $50,998,787 | $49,320,169 | $(825) | $(763) | $7,631,506 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $4,938 | $— |
1 | |
2 | |
4 | |
5 | |
16 | |
17 | |
18 | |
19 | |
21 | |
29 | |
30 | |
30 | |
30 | |
30 |
U.S. Treasury Securities | 33.8% |
Investment Grade Corporates | 31.2% |
Mortgage-Backed Securities | 20.8% |
Collateralized Debt Obligations | 9.8% |
Commercial Mortgage-Backed Securities | 8.1% |
High Yield Corporates | 6.6% |
Municipal Bonds | 3.0% |
Emerging Markets Bonds | 1.5% |
U.S. Government Agencies | 1.1% |
Asset-Backed Securities | 0.7% |
Residential Mortgage-Backed Securities | 0.5% |
Non-U.S. Government Bonds | 0.1% |
AAA | 9.5% |
AA | 4.3% |
A | 13.0% |
BBB | 26.6% |
BB | 6.5% |
B | 1.7% |
C (o) | 0.0% |
U.S. Government | 15.7% |
Federal Agencies | 21.8% |
Not Rated | 18.1% |
Cash & Cash Equivalents | 0.9% |
Other | (18.1)% |
Average Duration (d) | 6.4 |
Average Effective Maturity (m) | 7.5 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(v) | For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.53% | $1,000.00 | $884.81 | $2.48 |
Hypothetical (h) | 0.53% | $1,000.00 | $1,022.17 | $2.66 | |
Service Class | Actual | 0.78% | $1,000.00 | $883.32 | $3.64 |
Hypothetical (h) | 0.78% | $1,000.00 | $1,020.93 | $3.91 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 98.4% | ||||
Aerospace & Defense – 0.8% | ||||
Boeing Co., 2.196%, 2/04/2026 | $ | 6,236,000 | $ 5,620,916 | |
Boeing Co., 5.15%, 5/01/2030 | 1,704,000 | 1,635,632 | ||
Boeing Co., 5.705%, 5/01/2040 | 1,595,000 | 1,487,763 | ||
Boeing Co., 5.805%, 5/01/2050 | 1,550,000 | 1,423,631 | ||
TransDigm, Inc., 4.625%, 1/15/2029 | 4,262,000 | 3,430,995 | ||
$13,598,937 | ||||
Asset-Backed & Securitized – 19.0% | ||||
ACREC 2021-FL1 Ltd., “C”, FLR, 3.762% (LIBOR - 1mo. + 2.15%), 10/16/2036 (n) | $ | 2,546,000 | $ 2,448,763 | |
ACREC 2021-FL1 Ltd., “D”, FLR, 4.262% (LIBOR - 1mo. + 2.65%), 10/16/2036 (n) | 3,070,500 | 2,927,826 | ||
ACRES 2021-FL2 Issuer Ltd.,“C”, FLR, 4.173% (LIBOR - 1mo. + 2.65%), 1/15/2037 (n) | 3,129,000 | 3,003,335 | ||
Allegro CLO Ltd., 2014-1RA, “A2”, FLR, 2.698% (LIBOR - 3mo. + 1.6%), 10/21/2028 (n) | 5,554,267 | 5,403,358 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL2, “AS”, FLR, 2.843% (LIBOR - 1mo. + 1.45%), 9/15/2034 (n) | 980,500 | 958,413 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL2, “B”, FLR, 3.143% (LIBOR - 1mo. + 1.75%), 9/15/2034 (n) | 784,500 | 770,083 | ||
Arbor Realty Trust, Inc., CLO, 2020-FL1, “C”, FLR, 3.443% (LIBOR - 1mo. + 2.05%), 2/15/2035 (n) | 3,529,000 | 3,454,796 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “C”, FLR, 3.324% (LIBOR - 1mo. + 2%), 12/15/2035 (n) | 905,000 | 874,701 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “D”, FLR, 4.274% (LIBOR - 1mo. + 2.95%), 12/15/2035 (n) | 831,500 | 796,952 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “B”, FLR, 2.924% (LIBOR - 1mo. + 1.6%), 5/15/2036 (n) | 1,152,500 | 1,100,608 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “C”, FLR, 3.174% (LIBOR - 1mo. + 1.85%), 8/15/2034 (n) | 1,740,000 | 1,616,060 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “D”, FLR, 3.524% (LIBOR - 1mo. + 2.2%), 8/15/2034 (n) | 964,500 | 888,543 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL4, “C”, FLR, 3.624% (LIBOR - 1mo. + 2.3%), 11/15/2036 (n) | 3,443,500 | 3,311,143 | ||
Arbor Realty Trust, Inc., CLO, 2022-FL1, “D”, FLR, 3.779% (SOFR - 30 day + 3%), 1/15/2037 (n) | 9,290,000 | 8,548,377 | ||
AREIT 2019-CRE3 Trust, “A”, FLR, 2.718% (LIBOR - 1mo. + 1.02%), 9/14/2036 (n) | 260,601 | 257,995 | ||
AREIT 2019-CRE3 Trust, “B”, FLR, 2.998% (LIBOR - 1mo. + 1.55%), 9/14/2036 (n) | 2,569,500 | 2,554,194 | ||
AREIT 2019-CRE3 Trust, “C”, FLR, 3.348% (SOFR - 1mo. + 2.014%), 9/14/2036 (n) | 2,242,500 | 2,217,687 | ||
AREIT 2019-CRE3 Trust, “D”, FLR, 4.098% (LIBOR - 1mo. + 2.65%), 9/14/2036 (n) | 1,849,000 | 1,809,452 | ||
AREIT 2022-CRE6 Trust, “B”, FLR, 2.62% (SOFR - 30 day + 1.85%), 1/16/2037 (n) | 1,126,000 | 1,121,291 | ||
AREIT 2022-CRE6 Trust, “C”, FLR, 2.92% (SOFR - 30 day + 2.15%), 1/16/2037 (n) | 2,322,000 | 2,278,212 | ||
AREIT 2022-CRE6 Trust, “D”, FLR, 3.62% (SOFR - 30 day + 2.85%), 12/17/2024 (n) | 987,000 | 968,370 | ||
Atrium XII Corp., 2012-A, “B1R”, FLR, 2.486% (LIBOR - 3mo. + 1.35%), 4/22/2027 (n) | 7,430,000 | 7,209,099 | ||
Bayview Commercial Asset Trust, 0%, 12/25/2036 (i)(z) | 71,058 | 7 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 3.232% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 32,217 | 36,715 | ||
BBCMS Mortgage Trust, 2019-C5, “A4”, 3.063%, 11/15/2052 | 2,755,000 | 2,538,434 | ||
BDS 2019-FL4 Ltd., “A”, FLR, 2.623% (LIBOR - 1mo. + 1.10%), 8/15/2036 (n) | 1,102,990 | 1,099,962 | ||
BDS 2021-FL7 Ltd., “B”, FLR, 3.112% (LIBOR - 1mo. + 1.5%), 6/16/2036 (n) | 1,259,500 | 1,196,457 | ||
Bear Stearns Cos., Inc., “A2”, FLR, 2.523% (LIBOR - 1mo. + 0.45%), 12/25/2042 | 73,260 | 73,358 | ||
BSPDF 2021-FL1 Issuer Ltd., “B”, FLR, 3.124% (LIBOR - 1mo. + 1.8%), 10/15/2036 (n) | 4,380,500 | 4,158,636 | ||
BSPRT 2019-FL5 Issuer Ltd., “C”, FLR, 3.324% (LIBOR - 1mo. + 2%), 5/15/2029 (n) | 3,295,000 | 3,201,086 | ||
BSPRT 2021-FL6 Issuer Ltd., “B”, FLR, 2.924% (LIBOR - 1mo. + 1.6%), 3/15/2036 (n) | 3,669,500 | 3,450,060 | ||
BSPRT 2021-FL6 Issuer Ltd., “C”, FLR, 3.374% (LIBOR - 1mo. + 2.05%), 3/15/2036 (n) | 1,288,000 | 1,207,747 | ||
BSPRT 2021-FL7 Issuer Ltd., “C”, FLR, 3.624% (LIBOR - 1mo. + 2.3%), 12/15/2038 (n) | 836,500 | 785,250 | ||
BSPRT 2021-FL7 Issuer Ltd., “D”, FLR, 4.074% (LIBOR - 1mo. + 2.75%), 12/15/2038 (n) | 952,500 | 884,082 | ||
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | 1,307,217 | 1,199,237 | ||
Business Jet Securities LLC, 2021-1A, “B”, 2.918%, 4/15/2036 (n) | 501,797 | 448,324 | ||
BXMT 2020-FL2 Ltd., “B”, FLR, 2.991% (LIBOR - 1mo. + 1.4%), 2/15/2038 (n) | 1,731,000 | 1,637,419 | ||
Cantor Commercial Real Estate, 2019-CF2, “A5”, 2.874%, 11/15/2052 | 6,645,635 | 5,997,890 | ||
Capital Automotive, 2020-1A, “A4”, REIT, 3.19%, 2/15/2050 (n) | 2,396,507 | 2,288,609 | ||
CHCP 2021-FL1 Ltd., “B”, FLR, 3.098% (LIBOR - 1mo. + 1.65%), 2/15/2038 (n) | 1,102,500 | 1,061,725 | ||
CHCP 2021-FL1 Ltd., “C”, FLR, 3.548% (LIBOR - 1mo. + 2.1%), 2/15/2038 (n) | 1,249,000 | 1,196,162 | ||
Citigroup Commercial Mortgage Trust, 2014-GC25, “A4”, 3.635%, 10/10/2047 | 3,128,793 | 3,079,415 | ||
Citigroup Commercial Mortgage Trust, 2016-P6, “A5”, 3.72%, 12/10/2049 | 1,754,000 | 1,718,587 | ||
CLNC 2019-FL1 Ltd., “B”, FLR, 3.523% (LIBOR - 1mo. + 1.9%), 8/20/2035 (n) | 1,850,000 | 1,830,366 | ||
CLNC 2019-FL1 Ltd., “C”, FLR, 4.023% (LIBOR - 1mo. + 2.4%), 8/20/2035 (n) | 3,006,500 | 2,862,626 | ||
Commercial Mortgage Trust, 2015-LC21, “A4”, 3.708%, 7/10/2048 | 10,000,000 | 9,825,880 | ||
Commercial Mortgage Trust, 2015-PC1, “A5”, 3.902%, 7/10/2050 | 2,888,848 | 2,855,122 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Credit Acceptance Auto Loan Trust, 2021-3A, “C”, 1.63%, 9/16/2030 (n) | $ | 523,000 | $ 479,347 | |
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 2,695,346 | 2,639,680 | ||
Cutwater 2014-1A Ltd., “BR”, FLR, 3.444% (LIBOR - 3mo. + 2.4%), 7/15/2026 (n) | 3,135,000 | 3,104,942 | ||
Cutwater 2015-1A Ltd., “BR”, FLR, 2.844% (LIBOR - 3mo. + 1.8%), 1/15/2029 (n) | 10,770,000 | 10,436,453 | ||
DT Auto Owner Trust, 2019-2A, “C”, 3.18%, 2/18/2025 (n) | 37,740 | 37,750 | ||
Exeter Automobile Receivables Trust, 2020-1A, 2.49%, 1/15/2025 (n) | 892,520 | 892,370 | ||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | 7,904,407 | ���7,757,629 | ||
HarbourView CLO VII Ltd., 7RA, “B”, FLR, 2.744% (LIBOR - 3mo. + 1.7%), 7/18/2031 (n) | 6,545,000 | 6,149,034 | ||
Invitation Homes 2018-SFR1 Trust, “B”, FLR, 2.223% (LIBOR - 1mo. + 0.7%), 3/17/2037 (n) | 8,531,516 | 8,406,252 | ||
JPMBB Commercial Mortgage Securities Trust, 2015-C28, “A4”, 3.227%, 10/15/2048 | 12,188,428 | 11,854,472 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., 5.785%, 7/15/2042 (n) | 15,038 | 12,347 | ||
JPMorgan Mortgage Trust, “A1”, 2.032%, 10/25/2033 | 63,192 | 58,863 | ||
LCCM 2021-FL2 Trust, “C”, FLR, 3.474% (LIBOR - 1mo. + 2.15%), 12/13/2038 (n) | 1,985,500 | 1,879,296 | ||
Lehman Brothers Commercial Conduit Mortgage Trust, 1.063%, 2/18/2030 (i) | 899 | 0 | ||
LoanCore 2018-CRE1 Ltd., “AS”, FLR, 2.824% (LIBOR - 1mo. + 1.5%), 5/15/2028 (n) | 8,900,000 | 8,774,608 | ||
LoanCore 2018-CRE1 Ltd., “C”, FLR, 3.874% (LIBOR - 1mo. + 2.55%), 5/15/2028 (n) | 2,340,000 | 2,324,025 | ||
LoanCore 2018-CRE1 Ltd., “C”, FLR, 3.274% (LIBOR - 1mo. + 1.95%), 4/15/2034 (n) | 1,836,900 | 1,791,723 | ||
LoanCore 2018-CRE3 Ltd., “B”, FLR, 2.924% (LIBOR - 1mo. + 1.6%), 4/15/2034 (n) | 1,873,800 | 1,845,135 | ||
LoanCore 2019-CRE2 Ltd., “D”, FLR, 3.774% (LIBOR - 1mo. + 2.45%), 5/15/2036 (n) | 1,121,500 | 1,100,595 | ||
LoanCore 2019-CRE3 Ltd., “AS”, FLR, 2.694% (LIBOR - 1mo. + 1.37%), 4/15/2034 (n) | 1,359,553 | 1,353,181 | ||
LoanCore 2021-CRE5 Ltd., “AS”, FLR, 3.074% (LIBOR - 1mo. + 1.75%), 7/15/2036 (n) | 5,666,000 | 5,406,005 | ||
LoanCore 2021-CRE5 Ltd., “B”, FLR, 3.324% (LIBOR - 1mo. + 2%), 7/15/2036 (n) | 5,318,000 | 4,956,764 | ||
LoanCore 2021-CRE6 Ltd., “B”, FLR, 3.224% (LIBOR - 1mo. + 1.9%), 11/15/2038 (n) | 9,970,000 | 9,555,597 | ||
Madison Park Funding Ltd., 2017- 23A, “CR”, FLR, 3.224% (LIBOR - 3mo. + 2%), 7/27/2031 (n) | 5,894,060 | 5,629,110 | ||
Merrill Lynch Mortgage Investors, Inc., “A”, 2.407%, 5/25/2036 | 59,551 | 58,260 | ||
Merrill Lynch Mortgage Investors, Inc., “A5”, 2.112%, 4/25/2035 | 82,920 | 75,112 | ||
MF1 2020-FL4 Ltd., “AS”, FLR, 3.548% (LIBOR - 1mo. + 2.1%), 11/15/2035 (n) | 2,602,500 | 2,551,202 | ||
MF1 2021-FL5 Ltd., “C”, FLR, 3.148% (LIBOR - 1mo. + 1.7%), 7/15/2036 (n) | 2,589,000 | 2,459,993 | ||
MF1 2022-FL8 Ltd., “C”, FLR, 2.992% (SOFR - 30 day + 2.2%), 2/19/2037 (n) | 2,433,741 | 2,263,642 | ||
MF1 2022-FL8 Ltd., “D”, FLR, 3.442% (SOFR - 30 day + 2.65%), 2/19/2037 (n) | 1,407,473 | 1,315,699 | ||
Neuberger Berman CLO Ltd., 2013-15A, “CR2”, FLR, 2.894% (LIBOR - 3mo. + 1.85%), 10/15/2029 (n) | 7,481,614 | 7,057,706 | ||
NextGear Floorplan Master Owner Trust, 2019-2A, “A2”, 2.07%, 10/15/2024 (n) | 2,465,000 | 2,458,656 | ||
Oaktree CLO 2019-1A Ltd., “BR”, FLR, 2.886% (LIBOR - 3mo. + 1.75%), 4/22/2030 (n) | 5,000,000 | 4,735,235 | ||
Oaktree CLO 2019-1A Ltd., “CR”, FLR, 3.486% (LIBOR - 3mo. + 2.35%), 4/22/2030 (n) | 5,744,568 | 5,426,112 | ||
Palmer Square Loan Funding 2020-1A Ltd., “A2”, FLR, 2.828% (LIBOR - 3mo. + 1.35%), 2/20/2028 (n) | 3,930,000 | 3,843,674 | ||
Palmer Square Loan Funding 2020-1A Ltd., “B”, FLR, 3.378% (LIBOR - 3mo. + 1.9%), 2/20/2028 (n) | 3,453,628 | 3,308,040 | ||
Parallel 2015-1A Ltd., “C1R”, FLR, 2.812% (LIBOR - 3mo. + 1.75%), 7/20/2027 (n) | 1,680,000 | 1,649,983 | ||
Parallel 2015-1A Ltd., “C2R”, FLR, 2.812% (LIBOR - 3mo. + 1.75%), 7/20/2027 (n) | 1,810,000 | 1,752,500 | ||
PFP III 2021-7 Ltd., “B”, FLR, 2.909% (LIBOR - 1mo. + 1.4%), 4/14/2038 (n) | 935,953 | 878,417 | ||
PFP III 2021-7 Ltd., “C”, FLR, 3.159% (LIBOR - 1mo. + 1.65%), 4/14/2038 (n) | 1,640,418 | 1,534,573 | ||
PFP III 2021-8 Ltd., “D”, FLR, 3.659% (LIBOR - 1mo. + 2.15%), 8/09/2037 (n) | 3,737,500 | 3,519,460 | ||
Preferred Term Securities XIX Ltd., CDO, FLR, 2.178% (LIBOR - 3mo. + 0.35%), 12/22/2035 (n) | 133,006 | 118,715 | ||
Race Point CLO Ltd., 2013-8A, “AR-2”, FLR, 2.518% (LIBOR - 3mo. + 1.04%), 2/20/2030 (n) | 3,637,264 | 3,590,333 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “C”, FLR, 3.823% (LIBOR - 1mo. + 2.2%), 11/25/2036 (z) | 1,340,000 | 1,234,391 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 4.573% (LIBOR - 1mo. + 2.95%), 11/25/2036 (z) | 1,575,000 | 1,441,527 | ||
Residential Funding Mortgage Securities, Inc., FGIC, 4.456%, 12/25/2035 | 2,975 | 2,970 | ||
Santander Retail Auto Lease Trust, 2020-A, “C”, 2.56%, 3/20/2024 (n) | 2,276,000 | 2,244,935 | ||
Securitized Term Auto Receivable Trust, 2019-CRTA, “B”, 2.453%, 3/25/2026 (n) | 479,729 | 477,131 | ||
Securitized Term Auto Receivable Trust, 2019-CRTA, “C”, 2.849%, 3/25/2026 (n) | 572,093 | 569,598 | ||
Starwood Commercial Mortgage, 2021-FL2, “C”, FLR, 3.623% (LIBOR - 1mo. + 2.1%), 4/18/2038 (n) | 2,027,000 | 1,950,218 | ||
Starwood Commercial Mortgage, 2022-FL3, “B”, FLR, 2.729% (SOFR - 30 day + 1.95%), 11/15/2038 (n) | 1,391,000 | 1,322,291 | ||
Starwood Commercial Mortgage, 2022-FL3, “C”, FLR, 2.979% (SOFR - 30 day + 2.2%), 11/15/2038 (n) | 2,632,000 | 2,463,469 | ||
TICP CLO 2018-IA Ltd., “A2”, FLR, 2.713% (LIBOR - 3mo. + 1.5%), 4/26/2028 (n) | 6,750,828 | 6,579,713 | ||
UBS Commercial Mortgage Trust, 2017-C8, “A4”, 3.983%, 2/15/2051 | 5,865,766 | 5,763,056 | ||
UBS Commercial Mortgage Trust, 2019-C17, “A4”, 2.921%, 9/15/2052 | 12,215,133 | 11,047,079 | ||
Voya CLO 2012-4A Ltd., “A2R3”, FLR, 2.494% (LIBOR - 3mo. + 1.45%), 10/15/2030 (n) | 1,957,793 | 1,861,415 | ||
Voya CLO 2012-4A Ltd., “BR3”, FLR, 2.994% (LIBOR - 3mo. + 1.95%), 10/15/2030 (n) | 828,265 | 776,054 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Voya CLO 2012-4A Ltd., “C1R3”, FLR, 4.344% (LIBOR - 3mo. + 3.3%), 10/15/2030 (n) | $ | 1,187,823 | $ 1,069,522 | |
Wells Fargo Commercial Mortgage Trust, 2016-LC25, “A4”, 3.64%, 12/15/2059 | 13,071,416 | 12,747,157 | ||
Wells Fargo Commercial Mortgage Trust, 2017-C42, “A5”, 3.589%, 12/15/2050 | 3,970,000 | 3,831,389 | ||
Wells Fargo Commercial Mortgage Trust, 2018-C46, “A4”, 4.152%, 8/15/2051 | 1,430,000 | 1,413,423 | ||
$310,990,242 | ||||
Automotive – 0.1% | ||||
Volkswagen Group of America Finance LLC, 3.75%, 5/13/2030 (n) | $ | 2,118,000 | $ 1,944,911 | |
Broadcasting – 1.3% | ||||
Discovery, Inc., 4.65%, 5/15/2050 | $ | 4,028,000 | $ 3,167,464 | |
Magallanes, Inc., 5.05%, 3/15/2042 (n) | 5,334,000 | 4,538,114 | ||
Magallanes, Inc., 5.141%, 3/15/2052 (n) | 4,694,000 | 3,939,909 | ||
Magallanes, Inc., 5.391%, 3/15/2062 (n) | 1,915,000 | 1,601,895 | ||
Prosus N.V., 3.68%, 1/21/2030 (n) | 4,905,000 | 3,907,743 | ||
WMG Acquisition Corp., 3%, 2/15/2031 (n) | 5,200,000 | 4,033,432 | ||
$21,188,557 | ||||
Brokerage & Asset Managers – 1.4% | ||||
Charles Schwab Corp., 5% to 6/01/2027, FLR (CMT - 5yr. + 3.256%) to 6/01/2170 | $ | 6,058,000 | $ 5,430,569 | |
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 1,170,000 | 982,823 | ||
LPL Holdings, Inc., 4%, 3/15/2029 (n) | 4,555,000 | 3,897,072 | ||
Morgan Stanley Domestic Holdings, Inc., 3.8%, 8/24/2027 | 5,272,000 | 5,034,346 | ||
Morgan Stanley Domestic Holdings, Inc., 4.5%, 6/20/2028 | 3,485,000 | 3,486,375 | ||
Raymond James Financial, Inc., 4.95%, 7/15/2046 | 4,683,000 | 4,563,708 | ||
$23,394,893 | ||||
Building – 0.7% | ||||
ABC Supply Co., Inc., 4%, 1/15/2028 (n) | $ | 1,805,000 | $ 1,546,001 | |
Martin Marietta Materials, Inc., 3.45%, 6/01/2027 | 1,243,000 | 1,185,992 | ||
Standard Industries, Inc., 4.375%, 7/15/2030 (n) | 4,065,000 | 3,206,269 | ||
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 2,760,000 | 2,035,826 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | 3,356,000 | 3,042,676 | ||
$11,016,764 | ||||
Business Services – 0.6% | ||||
Equinix, Inc., 2.15%, 7/15/2030 | $ | 4,789,000 | $ 3,874,282 | |
Fiserv, Inc., 3.5%, 7/01/2029 | 2,280,000 | 2,079,787 | ||
Iron Mountain, Inc., 4.5%, 2/15/2031 (n) | 5,315,000 | 4,343,126 | ||
$10,297,195 | ||||
Cable TV – 1.9% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | $ | 4,025,000 | $ 3,341,870 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.908%, 7/23/2025 | 7,676,000 | 7,693,808 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.25%, 4/01/2053 | 6,586,000 | 5,565,258 | ||
CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 2,940,000 | 2,293,200 | ||
CSC Holdings LLC, 4.5%, 11/15/2031 (n) | 4,065,000 | 3,134,725 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 2,905,000 | 2,647,181 | ||
Sirius XM Radio, Inc., 4.125%, 7/01/2030 (n) | 3,995,000 | 3,336,584 | ||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | 3,558,000 | 2,777,446 | ||
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033 | 290,000 | 335,435 | ||
$31,125,507 | ||||
Chemicals – 0.2% | ||||
Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n) | $ | 3,100,000 | $ 2,530,747 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Computer Software – 0.6% | ||||
Dell International LLC/EMC Corp., 5.3%, 10/01/2029 | $ | 9,950,000 | $ 9,809,009 | |
Computer Software - Systems – 0.2% | ||||
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | $ | 3,745,000 | $ 3,492,437 | |
Conglomerates – 0.7% | ||||
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | $ | 1,627,000 | $ 1,448,030 | |
Carrier Global Corp., 3.577%, 4/05/2050 | 6,276,000 | 4,749,807 | ||
Westinghouse Air Brake Technologies Corp., 4.7%, 9/15/2028 | 4,993,000 | 4,821,760 | ||
$11,019,597 | ||||
Consumer Products – 0.3% | ||||
GSK Consumer Healthcare Capital US LLC, 3.375%, 3/24/2029 (n) | $ | 1,510,000 | $ 1,412,627 | |
GSK Consumer Healthcare Capital US LLC, 3.625%, 3/24/2032 (n) | 3,229,000 | 2,984,116 | ||
$4,396,743 | ||||
Consumer Services – 0.7% | ||||
Match Group Holdings II LLC, 3.625%, 10/01/2031 (n) | $ | 2,970,000 | $ 2,338,875 | |
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n) | 2,145,000 | 1,736,944 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n) | 6,221,000 | 4,224,628 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n) | 2,145,000 | 1,290,344 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2043 (n) | 5,511,321 | 1,446,953 | ||
$11,037,744 | ||||
Containers – 0.3% | ||||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | $ | 5,530,000 | $ 5,262,459 | |
Electrical Equipment – 0.2% | ||||
Arrow Electronics, Inc., 2.95%, 2/15/2032 | $ | 4,838,000 | $ 4,014,301 | |
Electronics – 0.9% | ||||
Broadcom, Inc., 4.15%, 11/15/2030 | $ | 2,376,000 | $ 2,176,923 | |
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 3,589,000 | 2,920,971 | ||
Broadcom, Inc., 3.137%, 11/15/2035 (n) | 3,219,000 | 2,444,452 | ||
Broadcom, Inc., 3.187%, 11/15/2036 (n) | 3,936,000 | 2,992,050 | ||
Broadcom, Inc., 4.926%, 5/15/2037 (n) | 3,219,000 | 2,885,971 | ||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 2.7%, 5/01/2025 | 508,000 | 482,896 | ||
$13,903,263 | ||||
Emerging Market Quasi-Sovereign – 0.1% | ||||
Indian Railway Finance Corp., 2.8%, 2/10/2031 (n) | $ | 1,268,000 | $ 1,027,683 | |
Energy - Independent – 0.8% | ||||
Diamondback Energy, Inc., 4.4%, 3/24/2051 | $ | 1,999,000 | $ 1,702,184 | |
Energean Israel Finance Ltd., 4.875%, 3/30/2026 | 3,943,000 | 3,480,092 | ||
Energean Israel Finance Ltd., 5.375%, 3/30/2028 | 901,000 | 762,516 | ||
Leviathan Bond Ltd., 6.5%, 6/30/2027 (n) | 2,197,000 | 2,028,270 | ||
Leviathan Bond Ltd., 6.75%, 6/30/2030 (n) | 2,670,000 | 2,402,733 | ||
Tengizchevroil Finance Co. International Ltd., 3.25%, 8/15/2030 | 3,294,000 | 2,505,285 | ||
$12,881,080 | ||||
Energy - Integrated – 0.2% | ||||
Eni S.p.A., 4%, 9/12/2023 (n) | $ | 2,526,000 | $ 2,513,605 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Financial Institutions – 1.9% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 4.5%, 9/15/2023 | $ | 4,803,000 | $ 4,780,022 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.5%, 7/15/2025 | 3,195,000 | 3,269,053 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3%, 10/29/2028 | 2,329,000 | 1,961,760 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.3%, 1/30/2032 | 2,763,000 | 2,211,758 | ||
Avolon Holdings Funding Ltd., 5.25%, 5/15/2024 (n) | 5,681,000 | 5,581,392 | ||
Avolon Holdings Funding Ltd., 3.95%, 7/01/2024 (n) | 4,592,000 | 4,396,496 | ||
Avolon Holdings Funding Ltd., 2.125%, 2/21/2026 (n) | 2,890,000 | 2,498,452 | ||
Avolon Holdings Funding Ltd., 4.25%, 4/15/2026 (n) | 1,779,000 | 1,647,437 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 2,615,000 | 2,132,670 | ||
Global Aircraft Leasing Co. Ltd., 6.5% (6.5% cash or 7.25% PIK), 9/15/2024 (n)(p) | 3,849,623 | 2,916,089 | ||
$31,395,129 | ||||
Food & Beverages – 0.6% | ||||
Anheuser-Busch InBev Worldwide, Inc., 5.45%, 1/23/2039 | $ | 1,299,000 | $ 1,320,690 | |
Indofood CBP, 3.541%, 4/27/2032 | 5,223,000 | 4,048,131 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n) | 4,965,000 | 4,698,376 | ||
$10,067,197 | ||||
Gaming & Lodging – 0.3% | ||||
Las Vegas Sands Corp., 3.5%, 8/18/2026 | $ | 3,253,000 | $ 2,827,181 | |
Marriott International, Inc., 3.5%, 10/15/2032 | 3,330,000 | 2,872,373 | ||
$5,699,554 | ||||
Insurance – 0.3% | ||||
Corebridge Financial, Inc., 3.9%, 4/05/2032 (n) | $ | 3,293,000 | $ 2,954,218 | |
Corebridge Financial, Inc., 4.35%, 4/05/2042 (n) | 442,000 | 376,930 | ||
Corebridge Financial, Inc., 4.4%, 4/05/2052 (n) | 1,291,000 | 1,076,258 | ||
$4,407,406 | ||||
Insurance - Property & Casualty – 2.2% | ||||
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025 | $ | 6,835,000 | $ 6,742,243 | |
American International Group, Inc., 3.9%, 4/01/2026 | 4,923,000 | 4,823,485 | ||
Aon Corp., 3.75%, 5/02/2029 | 7,982,000 | 7,539,041 | ||
Berkshire Hathaway Finance Corp., 2.85%, 10/15/2050 | 1,429,000 | 1,028,731 | ||
Brown & Brown, Inc., 4.95%, 3/17/2052 | 3,943,000 | 3,458,691 | ||
Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028 | 5,692,000 | 5,656,093 | ||
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 | 1,060,000 | 916,220 | ||
Liberty Mutual Group, Inc., 3.951%, 10/15/2050 (n) | 2,900,000 | 2,202,459 | ||
Marsh & McLennan Cos., Inc., 4.2%, 3/01/2048 | 3,155,000 | 2,789,759 | ||
$35,156,722 | ||||
International Market Quasi-Sovereign – 0.1% | ||||
Electricite de France S.A., 4.875%, 9/21/2038 (n) | $ | 2,687,000 | $ 2,378,612 | |
Machinery & Tools – 0.2% | ||||
CNH Industrial Capital LLC, 3.85%, 11/15/2027 | $ | 3,223,000 | $ 3,034,607 | |
Major Banks – 8.3% | ||||
Bank of America Corp., 3.419% to 12/20/2027, FLR (LIBOR - 3mo. + 1.04%) to 12/20/2028 | $ | 8,192,000 | $ 7,628,866 | |
Bank of America Corp., 2.496% to 2/13/2030, FLR (LIBOR - 3mo. + 0.99%) to 2/13/2031 | 9,824,000 | 8,302,488 | ||
Bank of America Corp., 2.572% to 10/20/2031, FLR (SOFR + 1.21%) to 10/20/2032 | 10,928,000 | 9,013,546 | ||
Bank of America Corp., 6.5% to 10/23/2024, FLR (LIBOR - 3mo. + 4.174%) to 10/23/2049 | 3,843,000 | 3,806,031 | ||
Bank of America Corp., 6.1%, 12/29/2049 | 8,096,000 | 7,971,969 | ||
Bank of America Corp., 5.875% to 3/15/2028, FLR (LIBOR - 3mo. + 2.931%) to 12/31/2059 | 5,924,000 | 5,201,458 | ||
Barclays PLC, 4.972% to 5/16/2028, FLR (LIBOR - 3mo. + 1.902%) to 5/16/2029 | 3,191,000 | 3,136,101 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
Barclays PLC, 2.894% to 11/24/2031, FLR (CMT - 1yr. + 1.3%) to 11/24/2032 | $ | 3,776,000 | $ 3,035,081 | |
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR - 1 day + 1.73%) to 5/14/2032 (n) | 1,689,000 | 1,344,093 | ||
Credit Suisse Group Fund (Guernsey) Ltd., 3.75%, 3/26/2025 | 3,021,000 | 2,926,258 | ||
Deutsche Bank AG, 2.311% to 11/16/2026, FLR (SOFR - 1 day + 1.219%) to 11/16/2027 | 5,055,000 | 4,362,375 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 6,000,000 | 5,117,503 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 6,176,000 | 4,644,404 | ||
HSBC Holdings PLC, 4.7% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2170 | 2,447,000 | 2,051,353 | ||
JPMorgan Chase & Co., 3.509%, 1/23/2029 | 2,290,000 | 2,141,958 | ||
JPMorgan Chase & Co., 4.005% to 4/23/2028, FLR (LIBOR - 3mo. + 1.12%) to 4/23/2029 | 11,383,000 | 10,910,246 | ||
JPMorgan Chase & Co., 4.203% to 7/23/2028, FLR (LIBOR - 3mo. + 1.26%) to 7/23/2029 | 2,576,000 | 2,484,513 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR - 1 day + 2.515%) to 5/13/2031 | 4,435,000 | 3,829,106 | ||
JPMorgan Chase & Co., 2.545% to 11/08/2031, FLR (SOFR - 1 day + 1.18%) to 11/08/2032 | 6,741,000 | 5,600,687 | ||
Lloyds Bank PLC, 3.75%, 1/11/2027 | 2,765,000 | 2,669,327 | ||
Mitsubishi UFJ Financial Group, Inc., 2.048%, 7/17/2030 | 8,031,000 | 6,548,743 | ||
Morgan Stanley, 2.511% to 10/20/2031, FLR (SOFR - 1 day + 1.2%) to 10/20/2032 | 6,985,000 | 5,771,387 | ||
Sumitomo Mitsui Financial Group, Inc., 2.13%, 7/08/2030 | 9,717,000 | 7,995,298 | ||
Sumitomo Mitsui Trust Bank Ltd., 0.85%, 3/25/2024 (n) | 1,311,000 | 1,243,045 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | 7,084,000 | 5,182,654 | ||
UBS Group Funding (Jersey) Ltd., 4.125%, 9/24/2025 (n) | 4,524,000 | 4,487,976 | ||
Wells Fargo & Co., 2.572% to 2/11/2030, FLR (LIBOR - 3mo. +1%) to 2/11/2031 | 4,514,000 | 3,880,356 | ||
Westpac Banking Corp., 2.894% to 2/4/2025, FLR (CMT - 5yr. + 1.35%) to 2/04/2030 | 5,356,000 | 5,074,583 | ||
$136,361,405 | ||||
Medical & Health Technology & Services – 2.2% | ||||
Alcon Finance Corp., 2.75%, 9/23/2026 (n) | $ | 593,000 | $ 554,292 | |
Alcon, Inc., 2.6%, 5/27/2030 (n) | 1,096,000 | 931,904 | ||
CommonSpirit Health, 2.95%, 11/01/2022 | 6,666,000 | 6,668,288 | ||
DaVita, Inc., 4.625%, 6/01/2030 (n) | 2,840,000 | 2,214,808 | ||
HCA Healthcare, Inc., 4.375%, 3/15/2042 (n) | 3,251,000 | 2,616,477 | ||
HCA Healthcare, Inc., 4.625%, 3/15/2052 (n) | 2,141,000 | 1,712,932 | ||
HCA, Inc., 5.25%, 6/15/2026 | 1,458,000 | 1,450,596 | ||
HCA, Inc., 4.125%, 6/15/2029 | 4,581,000 | 4,176,889 | ||
Northwell Healthcare, Inc., 3.979%, 11/01/2046 | 1,503,000 | 1,305,738 | ||
ProMedica Toledo Hospital, “B”, 5.325%, 11/15/2028 | 7,120,000 | 6,732,594 | ||
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 2,562,000 | 2,643,133 | ||
Tower Health, 4.451%, 2/01/2050 | 6,211,000 | 4,173,792 | ||
$35,181,443 | ||||
Metals & Mining – 1.1% | ||||
Anglo American Capital PLC, 2.25%, 3/17/2028 (n) | $ | 2,504,000 | $ 2,157,861 | |
Anglo American Capital PLC, 3.875%, 3/16/2029 (n) | 3,434,000 | 3,158,191 | ||
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | 2,927,000 | 2,435,468 | ||
Anglo American Capital PLC, 4.75%, 3/16/2052 (n) | 4,511,000 | 3,873,636 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 4,010,000 | 3,310,734 | ||
Novelis Corp., 3.25%, 11/15/2026 (n) | 759,000 | 641,564 | ||
Novelis Corp., 3.875%, 8/15/2031 (n) | 2,661,000 | 2,049,476 | ||
$17,626,930 | ||||
Midstream – 2.4% | ||||
Cheniere Corpus Christi Holdings LLC, 2.742%, 12/31/2039 | $ | 3,855,000 | $ 3,042,256 | |
Cheniere Energy Partners LP, 4.5%, 10/01/2029 | 2,483,000 | 2,216,574 | ||
Enbridge, Inc., 4.25%, 12/01/2026 | 4,734,000 | 4,685,023 | ||
Kinder Morgan (Delaware), Inc., 7.75%, 1/15/2032 | 6,350,000 | 7,408,985 | ||
Kinder Morgan Energy Partners LP, 6.375%, 3/01/2041 | 2,040,000 | 2,040,194 | ||
Kinder Morgan Energy Partners LP, 5.4%, 9/01/2044 | 2,612,000 | 2,406,631 | ||
MPLX LP, 4.95%, 3/14/2052 | 6,323,000 | 5,464,068 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Midstream – continued | ||||
ONEOK, Inc., 5.2%, 7/15/2048 | $ | 2,708,000 | $ 2,400,937 | |
Plains All American Pipeline LP/PAA Finance Corp., 3.55%, 12/15/2029 | 2,839,000 | 2,501,327 | ||
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028 | 2,675,000 | 2,572,704 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 1,975,000 | 1,892,678 | ||
Targa Resources Corp., 4.2%, 2/01/2033 | 930,000 | 842,436 | ||
Targa Resources Corp., 4.95%, 4/15/2052 | 1,533,000 | 1,313,704 | ||
$38,787,517 | ||||
Mortgage-Backed – 20.7% | ||||
Fannie Mae, 6%, 8/01/2022 - 3/01/2039 | $ | 1,050,838 | $ 1,139,848 | |
Fannie Mae, 2.68%, 3/01/2023 | 1,550,195 | 1,550,100 | ||
Fannie Mae, 2.41%, 5/01/2023 | 1,808,021 | 1,802,847 | ||
Fannie Mae, 2.55%, 5/01/2023 | 924,908 | 922,807 | ||
Fannie Mae, 5.5%, 6/01/2023 - 4/01/2040 | 4,186,748 | 4,478,637 | ||
Fannie Mae, 5%, 7/01/2023 - 3/01/2042 | 2,809,390 | 2,950,914 | ||
Fannie Mae, 4.5%, 5/01/2024 - 6/01/2044 | 9,135,378 | 9,394,182 | ||
Fannie Mae, 3.5%, 3/01/2026 - 7/01/2046 | 7,257,766 | 7,126,096 | ||
Fannie Mae, 3.95%, 1/01/2027 | 323,096 | 331,636 | ||
Fannie Mae, 3%, 11/01/2028 - 8/01/2047 | 6,648,015 | 6,375,928 | ||
Fannie Mae, 2.5%, 11/01/2031 - 11/01/2046 | 825,770 | 754,976 | ||
Fannie Mae, 6.5%, 7/01/2032 - 1/01/2033 | 2,383 | 2,528 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 429,823 | 41,333 | ||
Fannie Mae, 4%, 12/01/2039 - 1/01/2047 | 14,995,841 | 15,154,030 | ||
Fannie Mae, 3.25%, 5/25/2040 | 152,266 | 149,047 | ||
Fannie Mae, 2%, 10/25/2040 - 4/25/2046 | 347,191 | 331,100 | ||
Fannie Mae, 4%, 7/25/2046 (i) | 439,952 | 83,285 | ||
Fannie Mae, 3.5%, 12/01/2046 (f) | 1,488,537 | 1,459,768 | ||
Fannie Mae, UMBS, 1.5%, 2/01/2042 | 184,666 | 158,210 | ||
Fannie Mae, UMBS, 2%, 2/01/2042 - 3/01/2052 | 22,825,959 | 20,081,122 | ||
Fannie Mae, UMBS, 2.5%, 3/01/2042 - 4/01/2052 | 32,140,467 | 29,138,835 | ||
Fannie Mae, UMBS, 3%, 6/01/2051 - 1/01/2052 | 5,990,770 | 5,617,763 | ||
Fannie Mae, UMBS, 3.5%, 5/01/2052 | 921,969 | 888,503 | ||
Federal Home Loan Bank, 5%, 7/01/2035 | 881,602 | 928,092 | ||
Freddie Mac, 3.32%, 2/25/2023 | 3,785,289 | 3,783,333 | ||
Freddie Mac, 3.531%, 7/25/2023 | 2,401,000 | 2,405,739 | ||
Freddie Mac, 2.67%, 12/25/2024 | 2,784,000 | 2,733,304 | ||
Freddie Mac, 2.811%, 1/25/2025 | 3,492,775 | 3,438,476 | ||
Freddie Mac, 4%, 7/01/2025 - 4/01/2044 | 1,606,802 | 1,620,632 | ||
Freddie Mac, 4.5%, 7/01/2025 - 5/01/2042 | 2,416,395 | 2,495,338 | ||
Freddie Mac, 3.3%, 10/25/2026 | 2,958,000 | 2,937,767 | ||
Freddie Mac, 3%, 6/15/2028 - 2/25/2059 | 11,434,264 | 10,911,054 | ||
Freddie Mac, 4.06%, 10/25/2028 | 2,129,000 | 2,178,774 | ||
Freddie Mac, 1.218%, 7/25/2029 (i) | 4,046,369 | 259,170 | ||
Freddie Mac, 1.268%, 8/25/2029 (i) | 6,989,917 | 465,936 | ||
Freddie Mac, 1.984%, 4/25/2030 (i) | 1,901,414 | 230,081 | ||
Freddie Mac, 5.5%, 5/01/2034 - 1/01/2038 | 183,391 | 196,221 | ||
Freddie Mac, 6%, 8/01/2034 - 7/01/2038 | 52,166 | 55,854 | ||
Freddie Mac, 5%, 11/01/2035 - 7/01/2041 | 844,351 | 886,316 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 82,752 | 14,150 | ||
Freddie Mac, 3.5%, 11/01/2037 - 10/25/2058 | 12,629,800 | 12,406,940 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 72,488 | 6,712 | ||
Freddie Mac, 4%, 8/15/2044 (i) | 94,855 | 11,303 | ||
Freddie Mac, 3.25%, 11/25/2061 | 843,089 | 806,973 | ||
Freddie Mac, UMBS, 2%, 2/01/2042 - 5/01/2052 | 38,761,828 | 33,755,402 | ||
Freddie Mac, UMBS, 3.5%, 12/01/2046 - 5/01/2052 | 1,035,984 | 1,005,761 | ||
Freddie Mac, UMBS, 3%, 3/01/2047 - 6/01/2050 | 2,663,408 | 2,506,957 | ||
Freddie Mac, UMBS, 2.5%, 10/01/2051 - 5/01/2052 | 10,638,440 | 9,596,122 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Ginnie Mae, 5.5%, 5/15/2033 - 1/20/2042 | $ | 1,048,803 | $ 1,129,414 | |
Ginnie Mae, 6%, 1/20/2036 - 1/15/2039 | 100,754 | 109,317 | ||
Ginnie Mae, 4.5%, 4/15/2039 - 9/20/2041 | 4,409,980 | 4,605,278 | ||
Ginnie Mae, 4%, 10/20/2040 - 3/20/2048 | 1,393,894 | 1,415,109 | ||
Ginnie Mae, 3.5%, 11/15/2040 - 9/20/2048 | 6,896,734 | 6,798,117 | ||
Ginnie Mae, 3%, 11/20/2044 - 2/20/2052 | 10,349,798 | 9,865,089 | ||
Ginnie Mae, 2.5%, 8/20/2051 - 11/20/2051 | 9,352,879 | 8,590,040 | ||
Ginnie Mae, 2%, 1/20/2052 | 4,335,660 | 3,856,964 | ||
Ginnie Mae, TBA, 3%, 7/21/2052 | 6,125,000 | 5,773,291 | ||
Ginnie Mae, TBA, 3.5%, 7/21/2052 | 4,350,000 | 4,226,297 | ||
Ginnie Mae, TBA, 5%, 7/21/2052 | 5,700,000 | 5,840,719 | ||
Ginnie Mae, TBA, 4.5%, 8/15/2052 | 10,675,000 | 10,789,256 | ||
Ginnie Mae, TBA, 4%, 8/18/2052 | 11,674,452 | 11,595,786 | ||
UMBS, TBA, 2.5%, 7/25/2037 - 8/11/2052 | 24,375,000 | 22,113,081 | ||
UMBS, TBA, 2%, 8/16/2037 - 8/11/2052 | 26,325,000 | 23,728,412 | ||
UMBS, TBA, 3%, 8/16/2037 | 3,625,000 | 3,535,945 | ||
UMBS, TBA, 3.5%, 7/14/2052 | 4,125,000 | 3,966,768 | ||
UMBS, TBA, 5%, 7/14/2052 | 975,000 | 995,109 | ||
UMBS, TBA, 4%, 7/25/2052 | 3,600,000 | 3,549,867 | ||
UMBS, TBA, 5.5%, 8/11/2052 | 425,000 | 439,875 | ||
$338,493,636 | ||||
Municipals – 2.9% | ||||
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.06%, 12/01/2025 | $ | 765,000 | $ 753,530 | |
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.14%, 12/01/2036 | 8,850,000 | 8,222,376 | ||
Escambia County, FL, Health Facilities Authority Rev., Taxable (Baptist Health Care Corp.), “B”, AGM, 3.607%, 8/15/2040 | 1,295,000 | 1,088,667 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, Taxable, “B”, AGM, 0%, 2/15/2023 | 13,215,000 | 12,971,598 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Taxable, “A”, NPFG, 7.425%, 2/15/2029 | 8,019,000 | 9,009,099 | ||
Oklahoma Development Finance Authority, Health System Rev., Taxable (OU Medicine Project), “C”, 5.45%, 8/15/2028 | 3,770,000 | 3,340,383 | ||
Philadelphia, PA, School District, Taxable, “B”, AGM, 6.615%, 6/01/2030 | 3,250,000 | 3,695,215 | ||
Philadelphia, PA, School District, Taxable, “B”, AGM, 6.765%, 6/01/2040 | 2,195,000 | 2,647,879 | ||
State of Florida, Taxable, “A”, 2.154%, 7/01/2030 | 7,272,000 | 6,317,391 | ||
$48,046,138 | ||||
Natural Gas - Distribution – 0.8% | ||||
Boston Gas Co., 3.15%, 8/01/2027 (n) | $ | 9,122,000 | $ 8,473,261 | |
NiSource, Inc., 3.6%, 5/01/2030 | 4,171,000 | 3,821,385 | ||
$12,294,646 | ||||
Network & Telecom – 0.2% | ||||
Verizon Communications, Inc., 2.1%, 3/22/2028 | $ | 1,510,000 | $ 1,341,215 | |
Verizon Communications, Inc., 4.272%, 1/15/2036 | 2,647,000 | 2,492,200 | ||
$3,833,415 | ||||
Oils – 0.1% | ||||
Marathon Petroleum Corp., 5.85%, 12/15/2045 | $ | 2,507,000 | $ 2,400,970 | |
Other Banks & Diversified Financials – 1.6% | ||||
Bangkok Bank (Hong Kong), 3.733% to 9/25/2029, FLR (CMT - 5yr. + 1.9%) to 9/25/2034 (n) | $ | 4,138,000 | $ 3,619,343 | |
BBVA Bancomer S.A. de C.V., 6.75%, 9/30/2022 (n) | 2,570,000 | 2,574,074 | ||
Groupe BPCE S.A., 4.5%, 3/15/2025 (n) | 5,458,000 | 5,366,367 | ||
Macquarie Bank Ltd. of London, 6.125% to 3/08/2027, FLR (Swap Rate - 5yr. + 4.332%) to 12/31/2165 (n) | 4,694,000 | 4,245,507 | ||
Macquarie Group Ltd., 4.442% to 6/21/2032, FLR (SOFR - 1 day + 2.405%) to 6/21/2033 (n) | 11,447,000 | 10,585,951 | ||
$26,391,242 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Real Estate - Office – 0.4% | ||||
Boston Properties Ltd. LP, REIT, 2.55%, 4/01/2032 | $ | 7,238,000 | $ 5,760,315 | |
Retailers – 0.2% | ||||
MercadoLibre, Inc., 3.125%, 1/14/2031 | $ | 5,002,000 | $ 3,602,991 | |
Specialty Stores – 0.2% | ||||
Penske Automotive Group Co., 3.75%, 6/15/2029 | $ | 4,605,000 | $ 3,834,399 | |
Telecommunications - Wireless – 1.7% | ||||
American Tower Corp., REIT, 3.55%, 7/15/2027 | $ | 5,232,000 | $ 4,904,996 | |
American Tower Corp., REIT, 3.8%, 8/15/2029 | 1,403,000 | 1,287,791 | ||
Crown Castle International Corp., 3.8%, 2/15/2028 | 3,824,000 | 3,607,851 | ||
Crown Castle International Corp., 3.25%, 1/15/2051 | 146,000 | 104,731 | ||
Rogers Communications, Inc., 4.5%, 3/15/2042 (n) | 6,129,000 | 5,444,618 | ||
Rogers Communications, Inc., 4.55%, 3/15/2052 (n) | 6,129,000 | 5,382,229 | ||
SBA Communications Corp., 3.875%, 2/15/2027 | 2,055,000 | 1,875,783 | ||
SBA Communications Corp., 3.125%, 2/01/2029 | 4,025,000 | 3,294,463 | ||
T-Mobile USA, Inc., 2.55%, 2/15/2031 | 1,939,000 | 1,631,561 | ||
T-Mobile USA, Inc., 4.375%, 4/15/2040 | 635,000 | 566,818 | ||
$28,100,841 | ||||
Tobacco – 0.6% | ||||
B.A.T. Capital Corp., 4.742%, 3/16/2032 | $ | 5,611,000 | $ 4,986,981 | |
B.A.T. International Finance PLC, 4.448%, 3/16/2028 | 4,936,000 | 4,672,702 | ||
$9,659,683 | ||||
Transportation - Services – 0.3% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 3,603,000 | $ 4,225,717 | |
U.S. Government Agencies and Equivalents – 1.1% | ||||
Small Business Administration, 4.93%, 1/01/2024 | $ | 1,631 | $ 1,631 | |
Small Business Administration, 4.34%, 3/01/2024 | 2,854 | 2,827 | ||
Small Business Administration, 4.99%, 9/01/2024 | 2,916 | 2,892 | ||
Small Business Administration, 4.86%, 1/01/2025 | 6,435 | 6,409 | ||
Small Business Administration, 4.625%, 2/01/2025 | 8,360 | 8,308 | ||
Small Business Administration, 5.11%, 4/01/2025 | 3,913 | 3,901 | ||
Small Business Administration, 4.43%, 5/01/2029 | 107,322 | 107,924 | ||
Small Business Administration, 3.21%, 9/01/2030 | 1,749,259 | 1,700,972 | ||
Small Business Administration, 3.25%, 11/01/2030 | 153,353 | 149,282 | ||
Small Business Administration, 2.85%, 9/01/2031 | 351,597 | 338,247 | ||
Small Business Administration, 2.37%, 8/01/2032 | 269,687 | 260,619 | ||
Small Business Administration, 2.13%, 1/01/2033 | 1,303,261 | 1,233,238 | ||
Small Business Administration, 2.21%, 2/01/2033 | 361,762 | 341,122 | ||
Small Business Administration, 2.22%, 3/01/2033 | 1,081,416 | 1,018,012 | ||
Small Business Administration, 2.08%, 4/01/2033 | 1,856,085 | 1,751,612 | ||
Small Business Administration, 2.45%, 6/01/2033 | 1,918,615 | 1,811,843 | ||
Small Business Administration, 3.15%, 7/01/2033 | 2,785,781 | 2,708,881 | ||
Small Business Administration, 3.16%, 8/01/2033 | 3,114,249 | 3,068,890 | ||
Small Business Administration, 3.62%, 9/01/2033 | 2,856,941 | 2,855,160 | ||
$17,371,770 | ||||
U.S. Treasury Obligations – 15.6% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 (f) | $ | 30,300,000 | $ 21,821,918 | |
U.S. Treasury Bonds, 1.75%, 8/15/2041 | 9,700,000 | 7,378,441 | ||
U.S. Treasury Bonds, 2.375%, 2/15/2042 | 9,900,000 | 8,394,891 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – continued | ||||
U.S. Treasury Bonds, 2.375%, 11/15/2049 | $ | 14,700,000 | $ 12,415,758 | |
U.S. Treasury Bonds, 1.625%, 11/15/2050 | 3,500,000 | 2,461,621 | ||
U.S. Treasury Bonds, 2.25%, 2/15/2052 | 5,700,000 | 4,690,922 | ||
U.S. Treasury Notes, 0.125%, 12/31/2022 | 13,800,000 | 13,635,047 | ||
U.S. Treasury Notes, 0.375%, 10/31/2023 | 60,000,000 | 57,984,375 | ||
U.S. Treasury Notes, 0.75%, 12/31/2023 | 49,500,000 | 47,887,383 | ||
U.S. Treasury Notes, 2.25%, 3/31/2024 | 79,500,000 | 78,500,039 | ||
$255,170,395 | ||||
Utilities - Electric Power – 1.4% | ||||
Calpine Corp., 3.75%, 3/01/2031 (n) | $ | 3,680,000 | $ 2,993,312 | |
Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | 3,655,000 | 3,288,337 | ||
FirstEnergy Corp., 5.35%, 7/15/2047 | 2,074,000 | 1,751,265 | ||
FirstEnergy Corp., 3.4%, 3/01/2050 | 2,429,000 | 1,646,619 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 5,303,000 | 4,510,486 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 2,630,000 | 2,265,849 | ||
Pacific Gas & Electric Co., 3.3%, 8/01/2040 | 8,840,000 | 6,094,862 | ||
$22,550,730 | ||||
Total Bonds (Identified Cost, $1,743,111,758) | $1,607,279,084 | |||
Investment Companies (h) – 6.9% | ||||
Money Market Funds – 6.9% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $112,561,187) | 112,567,442 | $ 112,556,186 | ||
Other Assets, Less Liabilities – (5.3)% | (86,493,156) | |||
Net Assets – 100.0% | $1,633,342,114 |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $112,556,186 and $1,607,279,084, respectively. |
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $448,329,537, representing 27.4% of net assets. |
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. |
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
Bayview Commercial Asset Trust, 0%, 12/25/2036 | 10/25/06 | $7 | $7 |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “C”, FLR, 3.823% (LIBOR - 1mo. + 2.2%), 11/25/2036 | 11/12/21 | 1,340,000 | 1,234,391 |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 4.573% (LIBOR - 1mo. + 2.95%), 11/25/2036 | 11/12/21 | 1,575,000 | 1,441,527 |
Total Restricted Securities | $2,675,925 | ||
% of Net assets | 0.2% |
The following abbreviations are used in this report and are defined: |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
CDO | Collateralized Debt Obligation |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FGIC | Financial Guaranty Insurance Co. |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced |
UMBS | Uniform Mortgage-Backed Security |
Derivative Contracts at 6/30/22 | ||||||
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 5 yr | Long | USD | 468 | $52,533,000 | September – 2022 | $55,980 |
U.S. Treasury Ultra Note 10 yr | Short | USD | 94 | 11,973,250 | September – 2022 | 190,777 |
$246,757 | ||||||
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 690 | $144,910,782 | September – 2022 | $(1,002,458) |
U.S. Treasury Ultra Bond | Long | USD | 714 | 110,201,437 | September – 2022 | (3,251,688) |
$(4,254,146) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,743,111,758) | $1,607,279,084 |
Investments in affiliated issuers, at value (identified cost, $112,561,187) | 112,556,186 |
Restricted cash for MBS/TBA | 199,000 |
Receivables for | |
Net daily variation margin on open futures contracts | 1,613,227 |
TBA sale commitments | 27,149,332 |
Fund shares sold | 291,222 |
Interest and dividends | 11,368,050 |
Other assets | 2,482 |
Total assets | $1,760,458,583 |
Liabilities | |
Payables for | |
TBA purchase commitments | $124,408,960 |
Fund shares reacquired | 2,395,138 |
Payable to affiliates | |
Investment adviser | 43,286 |
Administrative services fee | 1,545 |
Shareholder servicing costs | 468 |
Distribution and/or service fees | 11,715 |
Payable for independent Trustees' compensation | 417 |
Accrued expenses and other liabilities | 254,940 |
Total liabilities | $127,116,469 |
Net assets | $1,633,342,114 |
Net assets consist of | |
Paid-in capital | $1,749,051,078 |
Total distributable earnings (loss) | (115,708,964) |
Net assets | $1,633,342,114 |
Shares of beneficial interest outstanding | 136,929,997 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $774,376,096 | 64,226,528 | $12.06 |
Service Class | 858,966,018 | 72,703,469 | 11.81 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Interest | $26,630,772 |
Dividends from affiliated issuers | 195,161 |
Other | 5,425 |
Total investment income | $26,831,358 |
Expenses | |
Management fee | $4,467,288 |
Distribution and/or service fees | 1,178,291 |
Shareholder servicing costs | 24,010 |
Administrative services fee | 138,831 |
Independent Trustees' compensation | 14,239 |
Custodian fee | 49,951 |
Shareholder communications | 36,536 |
Audit and tax fees | 41,610 |
Legal fees | 4,491 |
Miscellaneous | 66,628 |
Total expenses | $6,021,875 |
Reduction of expenses by investment adviser | (125,728) |
Net expenses | $5,896,147 |
Net investment income (loss) | $20,935,211 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(30,557,184) |
Affiliated issuers | (2,105) |
Futures contracts | (21,878,135) |
Forward foreign currency exchange contracts | 782,264 |
Foreign currency | (631) |
Net realized gain (loss) | $(51,655,791) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(187,682,498) |
Affiliated issuers | (5,001) |
Futures contracts | (5,660,831) |
Forward foreign currency exchange contracts | (2,206,397) |
Translation of assets and liabilities in foreign currencies | 1,424,018 |
Net unrealized gain (loss) | $(194,130,709) |
Net realized and unrealized gain (loss) | $(245,786,500) |
Change in net assets from operations | $(224,851,289) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $20,935,211 | $39,629,635 |
Net realized gain (loss) | (51,655,791) | 18,916,024 |
Net unrealized gain (loss) | (194,130,709) | (76,149,455) |
Change in net assets from operations | $(224,851,289) | $(17,603,796) |
Total distributions to shareholders | $— | $(52,872,122) |
Change in net assets from fund share transactions | $(113,722,799) | $31,041,630 |
Total change in net assets | $(338,574,088) | $(39,434,288) |
Net assets | ||
At beginning of period | 1,971,916,202 | 2,011,350,490 |
At end of period | $1,633,342,114 | $1,971,916,202 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $13.63 | $14.12 | $13.48 | $12.65 | $13.22 | $13.09 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.16 | $0.29 | $0.37 | $0.42 | $0.39 | $0.36 |
Net realized and unrealized gain (loss) | (1.73) | (0.40) | 0.76 | 0.87 | (0.53) | 0.22 |
Total from investment operations | $(1.57) | $(0.11) | $1.13 | $1.29 | $(0.14) | $0.58 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.38) | $(0.49) | $(0.46) | $(0.43) | $(0.45) |
From net realized gain | — | (0.00)(w) | — | — | — | — |
Total distributions declared to shareholders | $— | $(0.38) | $(0.49) | $(0.46) | $(0.43) | $(0.45) |
Net asset value, end of period (x) | $12.06 | $13.63 | $14.12 | $13.48 | $12.65 | $13.22 |
Total return (%) (k)(r)(s)(x) | (11.52)(n) | (0.81) | 8.47 | 10.21 | (1.09) | 4.46 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.54(a) | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 |
Expenses after expense reductions | 0.53(a) | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 |
Net investment income (loss) | 2.48(a) | 2.10 | 2.71 | 3.14 | 3.04 | 2.70 |
Portfolio turnover | 78(n) | 161 | 112 | 79 | 48 | 47 |
Net assets at end of period (000 omitted) | $774,376 | $928,578 | $921,342 | $939,179 | $862,752 | $997,415 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $13.37 | $13.86 | $13.24 | $12.43 | $12.99 | $12.87 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.14 | $0.25 | $0.33 | $0.38 | $0.35 | $0.32 |
Net realized and unrealized gain (loss) | (1.70) | (0.40) | 0.74 | 0.85 | (0.52) | 0.22 |
Total from investment operations | $(1.56) | $(0.15) | $1.07 | $1.23 | $(0.17) | $0.54 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.34) | $(0.45) | $(0.42) | $(0.39) | $(0.42) |
From net realized gain | — | (0.00)(w) | — | — | — | — |
Total distributions declared to shareholders | $— | $(0.34) | $(0.45) | $(0.42) | $(0.39) | $(0.42) |
Net asset value, end of period (x) | $11.81 | $13.37 | $13.86 | $13.24 | $12.43 | $12.99 |
Total return (%) (k)(r)(s)(x) | (11.67)(n) | (1.07) | 8.17 | 9.92 | (1.33) | 4.18 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.79(a) | 0.79 | 0.79 | 0.79 | 0.79 | 0.79 |
Expenses after expense reductions | 0.78(a) | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 |
Net investment income (loss) | 2.23(a) | 1.85 | 2.46 | 2.89 | 2.79 | 2.45 |
Portfolio turnover | 78(n) | 161 | 112 | 79 | 48 | 47 |
Net assets at end of period (000 omitted) | $858,966 | $1,043,338 | $1,090,009 | $1,105,005 | $1,137,033 | $1,449,260 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $272,542,165 | $— | $272,542,165 |
Non - U.S. Sovereign Debt | — | 3,406,295 | — | 3,406,295 |
Municipal Bonds | — | 48,046,138 | — | 48,046,138 |
U.S. Corporate Bonds | — | 441,112,524 | — | 441,112,524 |
Residential Mortgage-Backed Securities | — | 347,168,451 | — | 347,168,451 |
Commercial Mortgage-Backed Securities | — | 132,143,631 | — | 132,143,631 |
Asset-Backed Securities (including CDOs) | — | 170,171,796 | — | 170,171,796 |
Foreign Bonds | — | 192,688,084 | — | 192,688,084 |
Mutual Funds | 112,556,186 | — | — | 112,556,186 |
Total | $112,556,186 | $1,607,279,084 | $— | $1,719,835,270 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $246,757 | $— | $— | $246,757 |
Futures Contracts – Liabilities | (4,254,146) | — | — | (4,254,146) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $246,757 | $(4,254,146) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(21,878,135) | $— |
Foreign Exchange | — | 782,264 |
Total | $(21,878,135) | $782,264 |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(5,660,831) | $— |
Foreign Exchange | — | (2,206,397) |
Total | $(5,660,831) | $(2,206,397) |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $52,722,119 |
Long-term capital gains | 150,003 |
Total distributions | $52,872,122 |
As of 6/30/22 | |
Cost of investments | $1,859,608,689 |
Gross appreciation | 1,577,263 |
Gross depreciation | (141,350,682) |
Net unrealized appreciation (depreciation) | $(139,773,419) |
As of 12/31/21 | |
Undistributed ordinary income | 43,458,955 |
Undistributed long-term capital gain | 19,446,367 |
Other temporary differences | (1,424,018) |
Net unrealized appreciation (depreciation) | 47,661,021 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $25,516,208 | |
Service Class | — | 27,355,914 | |
Total | $— | $52,872,122 |
Up to $2.5 billion | 0.50% |
In excess of $2.5 billion and up to $5 billion | 0.45% |
In excess of $5 billion | 0.40% |
Purchases | Sales | |
U.S. Government securities | $1,245,203,511 | $1,191,923,553 |
Non-U.S. Government securities | 128,626,714 | 296,690,103 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 2,393,613 | $30,561,075 | 9,966,924 | $138,196,906 | |
Service Class | 2,323,829 | 29,228,742 | 11,172,713 | 151,938,632 | |
4,717,442 | $59,789,817 | 21,139,637 | $290,135,538 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 1,825,002 | $25,020,775 | |
Service Class | — | — | 2,032,386 | 27,355,914 | |
— | $— | 3,857,388 | $52,376,689 | ||
Shares reacquired | |||||
Initial Class | (6,292,997) | $(79,178,818) | (8,934,395) | $(123,643,623) | |
Service Class | (7,638,852) | (94,333,798) | (13,841,391) | (187,826,974) | |
(13,931,849) | $(173,512,616) | (22,775,786) | $(311,470,597) | ||
Net change | |||||
Initial Class | (3,899,384) | $(48,617,743) | 2,857,531 | $39,574,058 | |
Service Class | (5,315,023) | (65,105,056) | (636,292) | (8,532,428) | |
(9,214,407) | $(113,722,799) | 2,221,239 | $31,041,630 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $124,732,002 | $487,785,184 | $499,953,894 | $(2,105) | $(5,001) | $112,556,186 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $195,161 | $— |
1 | |
2 | |
4 | |
5 | |
20 | |
21 | |
22 | |
23 | |
25 | |
34 | |
35 | |
35 | |
35 | |
35 |
U.S. Treasury Note 5 yr, 9/30/2022 | 2.9% |
U.S. Treasury Notes, 0.375%, 11/30/2025 | 2.6% |
U.S. Treasury Notes, 1.375%, 1/31/2025 | 2.5% |
Microsoft Corp. | 2.2% |
Goldman Sachs Group, Inc. | 2.1% |
Cigna Corp. | 1.9% |
Johnson & Johnson | 1.8% |
UMBS, TBA, 2.5%, 30 year | 1.7% |
U.S. Treasury Bonds, 2.375%, 11/15/2049 | 1.7% |
Charles Schwab Corp. | 1.7% |
AAA | 4.6% |
AA | 1.9% |
A | 4.2% |
BBB | 8.6% |
BB | 0.2% |
B (o) | 0.0% |
CCC (o) | 0.0% |
U.S. Government | 8.8% |
Federal Agencies | 11.2% |
Not Rated | 3.6% |
Non-Fixed Income | 59.7% |
Cash & Cash Equivalents | 0.8% |
Other | (3.6)% |
Financials | 14.1% |
Health Care | 11.0% |
Industrials | 8.4% |
Information Technology | 7.6% |
Consumer Staples | 5.1% |
Communication Services | 3.7% |
Energy | 2.4% |
Utilities | 2.3% |
Consumer Discretionary | 2.1% |
Materials | 1.9% |
Convertible Debt | 0.8% |
Real Estate | 0.3% |
Investment Grade Corporates | 12.6% |
U.S. Treasury Securities | 12.4% |
Mortgage-Backed Securities | 11.2% |
Collateralized Debt Obligations | 3.4% |
Commercial Mortgage-Backed Securities | 2.1% |
Municipal Bonds | 0.4% |
Asset-Backed Securities | 0.3% |
Non-U.S. Government Bonds | 0.3% |
Emerging Markets Bonds | 0.3% |
High Yield Corporates | 0.1% |
U.S. Government Agencies (o) | 0.0% |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(o) | Less than 0.1%. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.61% | $1,000.00 | $872.21 | $2.83 |
Hypothetical (h) | 0.61% | $1,000.00 | $1,021.77 | $3.06 | |
Service Class | Actual | 0.86% | $1,000.00 | $870.86 | $3.99 |
Hypothetical (h) | 0.86% | $1,000.00 | $1,020.53 | $4.31 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 58.3% | ||||
Aerospace & Defense – 2.4% | ||||
Honeywell International, Inc. | 108,013 | $ 18,773,740 | ||
Howmet Aerospace, Inc. | 276,315 | 8,690,107 | ||
L3Harris Technologies, Inc. | 70,025 | 16,925,042 | ||
Northrop Grumman Corp. | 19,332 | 9,251,715 | ||
$53,640,604 | ||||
Alcoholic Beverages – 0.4% | ||||
Constellation Brands, Inc., “A” | 35,302 | $ 8,227,484 | ||
Automotive – 1.4% | ||||
Aptiv PLC (a) | 81,117 | $ 7,225,091 | ||
Lear Corp. | 77,365 | 9,739,480 | ||
LKQ Corp. | 269,334 | 13,221,606 | ||
$30,186,177 | ||||
Broadcasting – 0.4% | ||||
Omnicom Group, Inc. | 109,911 | $ 6,991,438 | ||
Warner Bros. Discovery, Inc. (a) | 196,366 | 2,635,232 | ||
$9,626,670 | ||||
Brokerage & Asset Managers – 2.8% | ||||
Cboe Global Markets, Inc. | 71,206 | $ 8,059,807 | ||
Charles Schwab Corp. | 575,266 | 36,345,306 | ||
Invesco Ltd. | 416,006 | 6,710,177 | ||
NASDAQ, Inc. | 73,312 | 11,183,013 | ||
$62,298,303 | ||||
Business Services – 2.7% | ||||
Accenture PLC, “A” | 42,088 | $ 11,685,733 | ||
Amdocs Ltd. | 160,807 | 13,396,831 | ||
Cognizant Technology Solutions Corp., “A” | 126,332 | 8,526,147 | ||
Equifax, Inc. | 16,582 | 3,030,858 | ||
Fidelity National Information Services, Inc. | 138,184 | 12,667,327 | ||
Fiserv, Inc. (a) | 107,269 | 9,543,723 | ||
$58,850,619 | ||||
Cable TV – 1.6% | ||||
Comcast Corp., “A” | 877,099 | $ 34,417,365 | ||
Chemicals – 0.5% | ||||
PPG Industries, Inc. | 103,935 | $ 11,883,928 | ||
Computer Software – 2.5% | ||||
Microsoft Corp. | 186,636 | $ 47,933,724 | ||
Oracle Corp. | 82,466 | 5,761,899 | ||
$53,695,623 | ||||
Construction – 1.6% | ||||
Masco Corp. | 369,979 | $ 18,720,937 | ||
Stanley Black & Decker, Inc. | 104,337 | 10,940,778 | ||
Vulcan Materials Co. | 45,106 | 6,409,563 | ||
$36,071,278 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – 0.7% | ||||
Colgate-Palmolive Co. | 109,633 | $ 8,785,989 | ||
Kimberly-Clark Corp. | 53,582 | 7,241,607 | ||
$16,027,596 | ||||
Consumer Services – 0.2% | ||||
Booking Holdings, Inc. (a) | 1,950 | $ 3,410,530 | ||
Electrical Equipment – 1.0% | ||||
Johnson Controls International PLC | 425,880 | $ 20,391,135 | ||
TE Connectivity Ltd. | 19,368 | 2,191,489 | ||
$22,582,624 | ||||
Electronics – 2.3% | ||||
Applied Materials, Inc. | 107,349 | $ 9,766,612 | ||
Intel Corp. | 362,451 | 13,559,292 | ||
NXP Semiconductors N.V. | 56,199 | 8,319,138 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 95,382 | 7,797,479 | ||
Texas Instruments, Inc. | 77,965 | 11,979,322 | ||
$51,421,843 | ||||
Energy - Independent – 2.4% | ||||
ConocoPhillips | 236,504 | $ 21,240,424 | ||
Hess Corp. | 162,794 | 17,246,397 | ||
Pioneer Natural Resources Co. | 63,302 | 14,121,410 | ||
$52,608,231 | ||||
Food & Beverages – 1.9% | ||||
Archer Daniels Midland Co. | 103,185 | $ 8,007,156 | ||
Danone S.A. | 108,035 | 6,029,846 | ||
General Mills, Inc. | 117,373 | 8,855,793 | ||
J.M. Smucker Co. | 33,456 | 4,282,702 | ||
Mondelez International, Inc. | 96,815 | 6,011,243 | ||
PepsiCo, Inc. | 45,806 | 7,634,028 | ||
$40,820,768 | ||||
Food & Drug Stores – 0.6% | ||||
Wal-Mart Stores, Inc. | 109,144 | $ 13,269,727 | ||
General Merchandise – 0.2% | ||||
Dollar Tree, Inc. (a) | 22,024 | $ 3,432,440 | ||
Health Maintenance Organizations – 1.9% | ||||
Cigna Corp. | 158,909 | $ 41,875,700 | ||
Insurance – 3.3% | ||||
Aon PLC | 83,481 | $ 22,513,156 | ||
Chubb Ltd. | 113,362 | 22,284,702 | ||
Travelers Cos., Inc. | 72,318 | 12,231,143 | ||
Willis Towers Watson PLC | 81,817 | 16,149,858 | ||
$73,178,859 | ||||
Internet – 0.5% | ||||
Alphabet, Inc., “A” (a) | 4,674 | $ 10,185,861 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Leisure & Toys – 0.3% | ||||
Electronic Arts, Inc. | 55,598 | $ 6,763,497 | ||
Machinery & Tools – 2.5% | ||||
Eaton Corp. PLC | 220,581 | $ 27,791,000 | ||
Ingersoll Rand, Inc. | 284,572 | 11,974,790 | ||
PACCAR, Inc. | 77,835 | 6,408,934 | ||
Regal Rexnord Corp. | 72,621 | 8,243,936 | ||
$54,418,660 | ||||
Major Banks – 6.0% | ||||
Bank of America Corp. | 862,444 | $ 26,847,882 | ||
Goldman Sachs Group, Inc. | 155,722 | 46,252,548 | ||
JPMorgan Chase & Co. | 290,982 | 32,767,483 | ||
Morgan Stanley | 177,969 | 13,536,322 | ||
PNC Financial Services Group, Inc. | 74,585 | 11,767,276 | ||
$131,171,511 | ||||
Medical & Health Technology & Services – 1.5% | ||||
ICON PLC (a) | 33,791 | $ 7,322,509 | ||
McKesson Corp. | 50,251 | 16,392,379 | ||
Quest Diagnostics, Inc. | 61,643 | 8,197,286 | ||
$31,912,174 | ||||
Medical Equipment – 2.6% | ||||
Becton, Dickinson and Co. | 29,148 | $ 7,185,857 | ||
Danaher Corp. | 79,104 | 20,054,446 | ||
Medtronic PLC | 203,204 | 18,237,559 | ||
Thermo Fisher Scientific, Inc. | 21,104 | 11,465,381 | ||
$56,943,243 | ||||
Metals & Mining – 0.2% | ||||
Rio Tinto PLC | 62,189 | $ 3,721,923 | ||
Other Banks & Diversified Financials – 1.9% | ||||
Northern Trust Corp. | 84,505 | $ 8,153,042 | ||
Truist Financial Corp. | 631,931 | 29,972,487 | ||
U.S. Bancorp | 95,191 | 4,380,690 | ||
$42,506,219 | ||||
Pharmaceuticals – 5.0% | ||||
Bayer AG | 130,777 | $ 7,773,349 | ||
Johnson & Johnson | 217,345 | 38,580,911 | ||
Merck & Co., Inc. | 393,326 | 35,859,531 | ||
Organon & Co. | 172,660 | 5,827,275 | ||
Roche Holding AG | 31,191 | 10,407,891 | ||
Vertex Pharmaceuticals, Inc. (a) | 40,149 | 11,313,587 | ||
$109,762,544 | ||||
Railroad & Shipping – 1.1% | ||||
Union Pacific Corp. | 107,977 | $ 23,029,334 | ||
Real Estate – 0.3% | ||||
STORE Capital Corp., REIT | 235,998 | $ 6,154,828 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Restaurants – 0.2% | ||||
Wendy's Co. | 256,844 | $ 4,849,215 | ||
Specialty Chemicals – 0.9% | ||||
Axalta Coating Systems Ltd. (a) | 473,774 | $ 10,475,143 | ||
DuPont de Nemours, Inc. | 167,206 | 9,293,310 | ||
$19,768,453 | ||||
Specialty Stores – 0.2% | ||||
Home Depot, Inc. | 9,880 | $ 2,709,787 | ||
Ross Stores, Inc. | 32,107 | 2,254,875 | ||
$4,964,662 | ||||
Telecommunications - Wireless – 0.9% | ||||
T-Mobile US, Inc. (a) | 140,481 | $ 18,900,314 | ||
Tobacco – 1.1% | ||||
Philip Morris International, Inc. | 234,641 | $ 23,168,452 | ||
Utilities - Electric Power – 2.3% | ||||
Duke Energy Corp. | 129,211 | $ 13,852,711 | ||
Exelon Corp. | 251,475 | 11,396,847 | ||
PG&E Corp. (a) | 923,786 | 9,219,384 | ||
Southern Co. | 227,092 | 16,193,931 | ||
$50,662,873 | ||||
Total Common Stocks (Identified Cost, $819,295,084) | $1,276,410,132 | |||
Bonds – 39.3% | ||||
Aerospace & Defense – 0.1% | ||||
BAE Systems PLC, 3.4%, 4/15/2030 (n) | $ | 1,108,000 | $ 1,011,440 | |
Huntington Ingalls Industries, Inc., 3.844%, 5/01/2025 | 504,000 | 496,244 | ||
Raytheon Technologies Corp., 4.125%, 11/16/2028 | 1,570,000 | 1,549,387 | ||
$3,057,071 | ||||
Asset-Backed & Securitized – 5.9% | ||||
ACRES 2021-FL2 Issuer Ltd., “AS”, FLR, 3.273% (LIBOR - 1mo. + 1.75%), 1/15/2037 (n) | $ | 1,851,500 | $ 1,764,682 | |
Allegro CLO Ltd., 2016-1A, “BR2”, FLR, 2.594% (LIBOR - 3mo. + 1.55%), 1/15/2030 (n) | 2,407,803 | 2,332,054 | ||
Arbor Realty Trust, Inc., CLO, 2020-FL1, “AS”, FLR, 2.793% (LIBOR - 1mo. + 1.4%), 2/15/2035 (n) | 1,150,000 | 1,117,665 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “AS”, FLR, 2.524% (LIBOR - 1mo. + 1.2%) 12/15/2035 (n) | 2,115,000 | 2,066,315 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “B”, FLR, 2.924% (LIBOR - 1mo. + 1.6%), 8/15/2034 (n) | 1,807,500 | 1,697,944 | ||
Arbor Realty Trust, Inc., CLO, 2022-FL1, “B”, FLR, 2.879% (SOFR - 30 day + 2.1%), 1/15/2037 (n) | 5,076,500 | 4,850,324 | ||
AREIT 2019-CRE3 Trust, “AS”, FLR, 2.748% (LIBOR - 1mo. + 1.3%), 9/14/2036 (n) | 3,366,000 | 3,364,839 | ||
AREIT 2022-CRE6 Trust, “B”, FLR, 2.62% (SOFR - 30 day + 1.85%), 1/16/2037 (n) | 3,088,500 | 3,075,584 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 3.232% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 658,382 | 750,310 | ||
BDS 2019-FL4 Ltd., “A”, FLR, 2.623% (LIBOR - 1mo. + 1.10%), 8/15/2036 (n) | 515,939 | 514,522 | ||
BSPRT 2021-FL6 Issuer Ltd., “AS”, FLR, 2.624% (LIBOR - 1mo. + 1.3%), 3/15/2036 (n) | 4,964,000 | 4,775,676 | ||
BSPRT 2021-FL7 Issuer Ltd., “B”, FLR, 3.374% (LIBOR - 1mo. + 2.05%), 12/15/2038 (n) | 849,500 | 804,865 | ||
BSPRT 2022-FL8 Issuer Ltd., “B”, FLR, 2.829% (SOFR - 30 day + 2.05%), 2/15/2037 (n) | 1,817,000 | 1,760,480 | ||
Business Jet Securities LLC, 2021-1A, “A”, 2.162%, 4/15/2036 (n) | 1,190,019 | 1,075,905 | ||
BXMT 2021-FL4 Ltd., “AS”, FLR, 2.624% (LIBOR - 1mo. + 1.3%), 5/15/2038 (n) | 5,214,000 | 5,055,091 | ||
CHCP 2021-FL1 Ltd., “AS”, FLR, 2.748% (LIBOR - 1mo. + 1.3%) 2/15/2038 (n) | 2,203,500 | 2,127,813 | ||
Columbia Cent CLO 28 Ltd., “A-2-R”, 3.07%, 11/07/2030 (n) | 3,492,733 | 3,343,747 | ||
Commercial Mortgage Trust, 2015-LC21, “A4”, 3.708%, 7/10/2048 | 3,980,975 | 3,911,658 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “B”, 1.38%, 7/15/2030 (n) | 1,118,000 | 1,028,945 | ||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 2,316,427 | 2,268,587 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Cutwater 2015-1A Ltd., “AR”, FLR, 2.264% (LIBOR - 3mo. + 1.22%), 1/15/2029 (n) | $ | 2,070,022 | $ 2,055,826 | |
Dryden Senior Loan Fund, 2013-26A, “AR”, CLO, FLR, 1.944% (LIBOR - 3mo. + 0.9%), 4/15/2029 (n) | 1,918,596 | 1,887,850 | ||
Dryden Senior Loan Fund, 2018-55A, “A1”, CLO, FLR, 2.064% (LIBOR - 3mo. + 1.02%), 4/15/2031 (n) | 4,414,000 | 4,317,726 | ||
GMAC Mortgage Corp. Loan Trust, FGIC, 5.805%, 10/25/2036 | 118,312 | 120,158 | ||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | 4,243,101 | 4,164,310 | ||
JPMBB Commercial Mortgage Securities Trust, 2014-C26, “A4”, 3.494%, 1/15/2048 | 4,880,000 | 4,786,070 | ||
JPMBB Commercial Mortgage Securities Trust, 2015-C28, “A4”, 3.227%, 10/15/2048 | 3,256,792 | 3,167,558 | ||
LCCM 2021-FL2 Trust, “B”, FLR, 3.224% (LIBOR - 1mo. + 1.9%), 12/13/2038 (n) | 2,562,000 | 2,502,464 | ||
LoanCore 2021-CRE5 Ltd., “AS”, FLR, 3.074% (LIBOR - 1mo. + 1.75%), 7/15/2036 (n) | 5,288,000 | 5,045,351 | ||
MF1 2020-FL4 Ltd., “A”, FLR, 3.148% (LIBOR - 1mo. + 1.7%), 11/15/2035 (n) | 1,701,000 | 1,688,015 | ||
MF1 2021-FL5 Ltd., “AS”, FLR, 2.648% (LIBOR - 1mo. + 1.2%), 7/15/2036 (n) | 5,459,500 | 5,310,881 | ||
MF1 2022-FL8 Ltd., “B”, FLR, 2.742% (SOFR - 30 day + 1.95%), 2/19/2037 (n) | 2,251,053 | 2,136,394 | ||
MidOcean Credit CLO, 2013-2A, “BR”, FLR, 2.888% (LIBOR - 3mo. + 1.65%), 1/29/2030 (n) | 3,932,725 | 3,774,173 | ||
Morgan Stanley Bank of America Merrill Lynch Trust, 2017-C34, “A4”, 3.536%, 11/15/2052 | 1,600,004 | 1,542,415 | ||
Neuberger Berman CLO Ltd., 2013-15A, “BR2”, FLR, 2.394% (LIBOR - 3mo. + 1.35%), 10/15/2029 (n) | 1,750,540 | 1,678,258 | ||
Neuberger Berman CLO Ltd., 2015-20A, “ARR”, FLR, 2.204% (LIBOR - 3mo. + 1.16%), 7/15/2034 (n) | 1,900,000 | 1,837,498 | ||
Oaktree CLO 2019-1A Ltd., “BR”, FLR, 2.886% (LIBOR - 3mo. + 1.75%), 4/22/2030 (n) | 5,195,227 | 4,920,124 | ||
PFP III 2021-7 Ltd., “AS”, FLR, 2.474% (LIBOR - 1mo. + 1.15%), 4/14/2038 (n) | 3,912,305 | 3,818,722 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL5, “A”, FLR, 2.623% (LIBOR - 1mo. + 1%), 4/25/2038 (z) | 2,769,729 | 2,704,929 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “B”, FLR, 3.424% (LIBOR - 1mo. + 1.8%), 11/25/2036 (z) | 1,130,000 | 1,052,253 | ||
Residential Funding Mortgage Securities, Inc., FGIC, 4.456%, 12/25/2035 | 63,221 | 63,126 | ||
Santander Retail Auto Lease Trust, 2020-A, “B”, 2.41%, 3/20/2024 (n) | 1,631,000 | 1,616,421 | ||
Starwood Commercial Mortgage, 2022-FL3, “AS”, FLR, 2.579% (SOFR - 30 day + 1.8%), 11/15/2038 (n) | 5,210,500 | 5,023,354 | ||
TPG Real Estate Finance, 2021-FL4, “A”, FLR, 2.723% (LIBOR - 1mo. + 1.2%), 3/15/2038 (n) | 5,181,500 | 5,067,953 | ||
UBS Commercial Mortgage Trust, 2019-C17, “A4”, 2.921%, 9/15/2052 | 2,461,404 | 2,226,036 | ||
Verizon Owner Trust, 2020-A, “B”, 2.43%, 7/22/2024 | 2,616,000 | 2,587,191 | ||
Voya CLO 2012-4A Ltd., “A2R3”, FLR, 2.494% (LIBOR - 3mo. + 1.45%), 10/15/2030 (n) | 2,010,166 | 1,911,210 | ||
Wells Fargo Commercial Mortgage Trust, 2015-C28, “A4”, 3.54%, 5/15/2048 | 4,315,766 | 4,229,311 | ||
$128,922,583 | ||||
Automotive – 0.5% | ||||
General Motors Co., 6.75%, 4/01/2046 | $ | 846,000 | $ 848,862 | |
Hyundai Capital America, 2.65%, 2/10/2025 (n) | 804,000 | 766,914 | ||
Hyundai Capital America, 3%, 2/10/2027 (n) | 1,389,000 | 1,277,653 | ||
Lear Corp., 4.25%, 5/15/2029 | 656,000 | 602,514 | ||
Magna International, Inc., 2.45%, 6/15/2030 | 1,902,000 | 1,619,289 | ||
Stellantis N.V., 2.691%, 9/15/2031 (n) | 2,944,000 | 2,330,887 | ||
Volkswagen Group of America Finance LLC, 3.35%, 5/13/2025 (n) | 3,607,000 | 3,486,203 | ||
$10,932,322 | ||||
Broadcasting – 0.3% | ||||
Magallanes, Inc., 5.05%, 3/15/2042 (n) | $ | 1,937,000 | $ 1,647,980 | |
Magallanes, Inc., 5.141%, 3/15/2052 (n) | 1,692,000 | 1,420,180 | ||
Walt Disney Co., 3.5%, 5/13/2040 | 3,478,000 | 2,964,942 | ||
$6,033,102 | ||||
Brokerage & Asset Managers – 0.2% | ||||
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | $ | 2,155,000 | $ 1,810,243 | |
Morgan Stanley Domestic Holdings, Inc., 4.5%, 6/20/2028 | 975,000 | 975,385 | ||
Raymond James Financial, Inc., 4.95%, 7/15/2046 | 2,057,000 | 2,004,601 | ||
$4,790,229 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Building – 0.2% | ||||
Martin Marietta Materials, Inc., 2.5%, 3/15/2030 | $ | 190,000 | $ 160,273 | |
Masco Corp., 2%, 2/15/2031 | 3,622,000 | 2,845,875 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | 380,000 | 344,522 | ||
$3,350,670 | ||||
Business Services – 0.5% | ||||
Equinix, Inc., 2.625%, 11/18/2024 | $ | 2,863,000 | $ 2,746,251 | |
Equinix, Inc., 1.8%, 7/15/2027 | 1,829,000 | 1,587,005 | ||
Experian Finance PLC, 4.25%, 2/01/2029 (n) | 1,450,000 | 1,422,238 | ||
Fiserv, Inc., 2.65%, 6/01/2030 | 730,000 | 618,302 | ||
Global Payments, Inc., 1.2%, 3/01/2026 | 2,011,000 | 1,771,547 | ||
RELX Capital, Inc., 3%, 5/22/2030 | 620,000 | 557,218 | ||
S&P Global, Inc., 4.25%, 5/01/2029 (n) | 795,000 | 786,172 | ||
Verisk Analytics, Inc., 4.125%, 3/15/2029 | 1,857,000 | 1,789,289 | ||
Western Union Co., 2.85%, 1/10/2025 | 493,000 | 472,837 | ||
$11,750,859 | ||||
Cable TV – 0.4% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | $ | 1,053,000 | $ 1,059,016 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 3.5%, 6/01/2041 | 2,122,000 | 1,485,189 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.375%, 5/01/2047 | 430,000 | 366,129 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.25%, 4/01/2053 | 1,734,000 | 1,465,253 | ||
Cox Communications, Inc., 1.8%, 10/01/2030 (n) | 1,333,000 | 1,054,442 | ||
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033 | 2,526,000 | 2,921,755 | ||
$8,351,784 | ||||
Chemicals – 0.1% | ||||
RPM International, Inc., 2.95%, 1/15/2032 | $ | 1,427,000 | $ 1,184,189 | |
Sherwin-Williams Co., 2.3%, 5/15/2030 | 1,542,000 | 1,301,289 | ||
$2,485,478 | ||||
Conglomerates – 0.3% | ||||
Carrier Global Corp., 3.377%, 4/05/2040 | $ | 3,222,000 | $ 2,525,789 | |
Roper Technologies, Inc., 4.2%, 9/15/2028 | 675,000 | 661,870 | ||
Roper Technologies, Inc., 2.95%, 9/15/2029 | 411,000 | 362,524 | ||
Roper Technologies, Inc., 2%, 6/30/2030 | 1,302,000 | 1,048,461 | ||
Westinghouse Air Brake Technologies Corp., 3.2%, 6/15/2025 | 808,000 | 770,403 | ||
Westinghouse Air Brake Technologies Corp., 4.7%, 9/15/2028 | 2,112,000 | 2,039,567 | ||
$7,408,614 | ||||
Consumer Products – 0.1% | ||||
GSK Consumer Healthcare Capital US LLC, 3.375%, 3/24/2029 (n) | $ | 1,861,000 | $ 1,740,993 | |
Consumer Services – 0.1% | ||||
Booking Holdings, Inc., 4.625%, 4/13/2030 | $ | 1,430,000 | $ 1,421,824 | |
Electrical Equipment – 0.0% | ||||
Arrow Electronics, Inc., 2.95%, 2/15/2032 | $ | 838,000 | $ 695,325 | |
Electronics – 0.4% | ||||
Broadcom, Inc., 4.15%, 11/15/2030 | $ | 505,000 | $ 462,688 | |
Broadcom, Inc., 4.3%, 11/15/2032 | 1,329,000 | 1,207,050 | ||
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 1,184,000 | 963,619 | ||
Broadcom, Inc., 3.187%, 11/15/2036 (n) | 2,359,000 | 1,793,254 | ||
Broadcom, Inc., 4.926%, 5/15/2037 (n) | 683,000 | 612,339 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Electronics – continued | ||||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 2.5%, 5/11/2031 | $ | 2,212,000 | $ 1,818,359 | |
NXP B.V./NXP Funding LLC/NXP USA, Inc., 3.25%, 5/11/2041 | 1,896,000 | 1,427,162 | ||
$8,284,471 | ||||
Energy - Independent – 0.0% | ||||
Diamondback Energy, Inc., 4.4%, 3/24/2051 | $ | 360,000 | $ 306,546 | |
Energy - Integrated – 0.4% | ||||
BP Capital Markets America, Inc., 2.721%, 1/12/2032 | $ | 4,182,000 | $ 3,599,823 | |
Cenovus Energy, Inc., 5.375%, 7/15/2025 | 504,000 | 518,744 | ||
Eni S.p.A., 4.75%, 9/12/2028 (n) | 3,564,000 | 3,556,400 | ||
$7,674,967 | ||||
Financial Institutions – 0.6% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 4.875%, 1/16/2024 | $ | 362,000 | $ 360,108 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 2.45%, 10/29/2026 | 4,225,000 | 3,678,973 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.65%, 7/21/2027 | 2,329,000 | 2,115,218 | ||
Air Lease Corp., 2.2%, 1/15/2027 | 1,394,000 | 1,214,927 | ||
Air Lease Corp., 2.875%, 1/15/2032 | 1,830,000 | 1,428,436 | ||
Avolon Holdings Funding Ltd., 4.375%, 5/01/2026 (n) | 682,000 | 631,791 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 2,183,000 | 1,899,411 | ||
Avolon Holdings Funding Ltd., 2.528%, 11/18/2027 (n) | 1,821,000 | 1,484,365 | ||
Park Aerospace Holdings Ltd., 5.5%, 2/15/2024 (n) | 639,000 | 633,812 | ||
$13,447,041 | ||||
Food & Beverages – 0.4% | ||||
Anheuser-Busch InBev S.A., 8%, 11/15/2039 | $ | 2,950,000 | $ 3,760,177 | |
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038 | 737,000 | 675,930 | ||
Constellation Brands, Inc., 3.5%, 5/09/2027 | 1,544,000 | 1,482,194 | ||
Diageo Capital PLC, 2.375%, 10/24/2029 | 2,618,000 | 2,324,194 | ||
Keurig Dr Pepper, Inc., 3.2%, 5/01/2030 | 304,000 | 271,971 | ||
$8,514,466 | ||||
Gaming & Lodging – 0.3% | ||||
GLP Capital LP/GLP Financing II, Inc., 5.3%, 1/15/2029 | $ | 1,593,000 | $ 1,521,492 | |
Las Vegas Sands Corp., 3.9%, 8/08/2029 | 783,000 | 639,786 | ||
Marriott International, Inc., 4%, 4/15/2028 | 1,731,000 | 1,655,390 | ||
Marriott International, Inc., 4.625%, 6/15/2030 | 1,979,000 | 1,897,236 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 7,000 | 5,805 | ||
Marriott International, Inc., 2.75%, 10/15/2033 | 1,600,000 | 1,258,204 | ||
$6,977,913 | ||||
Insurance – 0.4% | ||||
AIA Group Ltd., 3.375%, 4/07/2030 (n) | $ | 2,338,000 | $ 2,187,862 | |
Corebridge Financial, Inc., 3.9%, 4/05/2032 (n) | 3,078,000 | 2,761,338 | ||
Metropolitan Life Global Funding I, 3.3%, 3/21/2029 (n) | 4,200,000 | 3,916,395 | ||
$8,865,595 | ||||
Insurance - Health – 0.1% | ||||
Humana, Inc., 3.7%, 3/23/2029 | $ | 1,850,000 | $ 1,751,292 | |
Insurance - Property & Casualty – 0.3% | ||||
Aon Corp., 3.75%, 5/02/2029 | $ | 4,102,000 | $ 3,874,360 | |
Aon Corp./Aon Global Holdings PLC, 2.6%, 12/02/2031 | 172,000 | 144,197 | ||
Brown & Brown, Inc., 4.2%, 3/17/2032 | 2,124,000 | 1,933,352 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – continued | ||||
Liberty Mutual Group, Inc., 3.951%, 10/15/2050 (n) | $ | 1,087,000 | $ 825,542 | |
$6,777,451 | ||||
International Market Quasi-Sovereign – 0.3% | ||||
Temasek Financial I Ltd. (Republic of Singapore), 2.375%, 1/23/2023 (n) | $ | 6,400,000 | $ 6,380,672 | |
Machinery & Tools – 0.1% | ||||
CNH Industrial Capital LLC, 4.2%, 1/15/2024 | $ | 1,679,000 | $ 1,680,121 | |
CNH Industrial Capital LLC, 1.875%, 1/15/2026 | 448,000 | 406,060 | ||
$2,086,181 | ||||
Major Banks – 2.7% | ||||
Bank of America Corp., 3.366% to 1/23/2025, FLR (LIBOR - 3mo. + 0.81%) to 1/23/2026 | $ | 1,626,000 | $ 1,574,767 | |
Bank of America Corp., 3.5%, 4/19/2026 | 1,361,000 | 1,325,949 | ||
Bank of America Corp., 2.572% to 10/20/2031, FLR (SOFR + 1.21%) to 10/20/2032 | 3,452,000 | 2,847,251 | ||
Barclays PLC, 2.894% to 11/24/2031, FLR (CMT - 1yr. + 1.3%) to 11/24/2032 | 877,000 | 704,917 | ||
Capital One Financial Corp., 3.75%, 3/09/2027 | 1,728,000 | 1,654,001 | ||
Capital One Financial Corp., 3.273% to 3/01/2029, FLR (SOFR - 1 day + 1.79%) to 3/01/2030 | 3,742,000 | 3,311,503 | ||
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR - 1 day + 1.73%) to 5/14/2032 (n) | 1,258,000 | 1,001,107 | ||
Deutsche Bank AG, 2.311% to 11/16/2026, FLR (SOFR - 1 day + 1.219%) to 11/16/2027 | 880,000 | 759,424 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 2,258,000 | 1,925,887 | ||
Goldman Sachs Group, Inc., 2.383% to 7/21/2031, FLR (SOFR - 1 day + 1.248%) to 7/21/2032 | 2,831,000 | 2,289,306 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 922,000 | 693,352 | ||
HSBC Holdings PLC, 4.7% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2170 | 442,000 | 370,534 | ||
JPMorgan Chase & Co., 3.782% to 2/01/2027, FLR (LIBOR - 3mo. + 1.337%) to 2/01/2028 | 3,163,000 | 3,037,323 | ||
JPMorgan Chase & Co., 2.739% to 10/15/2029, FLR (SOFR - 1 day + 1.51%) to 10/15/2030 | 897,000 | 782,636 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR - 1 day + 2.515%) to 5/13/2031 | 476,000 | 410,971 | ||
JPMorgan Chase & Co., 2.545% to 11/08/2031, FLR (SOFR - 1 day + 1.18%) to 11/08/2032 | 4,631,000 | 3,847,616 | ||
JPMorgan Chase & Co., 2.963% to 1/25/2032, FLR (SOFR - 1 day + 1.26%) to 1/25/2033 | 1,781,000 | 1,528,741 | ||
JPMorgan Chase & Co., 3.109% to 4/22/2040, FLR (SOFR - 1 day + 2.46%) to 4/22/2041 | 2,454,000 | 1,902,333 | ||
JPMorgan Chase & Co., 3.897% to 1/23/2048, FLR (LIBOR - 3mo. + 1.22%) to 1/23/2049 | 938,000 | 791,597 | ||
Mitsubishi UFJ Financial Group, Inc., 2.852% to 1/19/2032, FLR (CMT - 1yr. + 1.1%) to 1/19/2033 | 2,674,000 | 2,263,280 | ||
Morgan Stanley, 3.875%, 4/29/2024 | 522,000 | 522,665 | ||
Morgan Stanley, 4%, 7/23/2025 | 1,063,000 | 1,062,103 | ||
Morgan Stanley, 2.699% to 1/22/2030, FLR (SOFR - 1 day + 1.143%) to 1/22/2031 | 6,047,000 | 5,237,428 | ||
Morgan Stanley, 2.943% to 1/21/2032, FLR (SOFR - 1 day + 1.29%) to 1/21/2033 | 3,130,000 | 2,682,577 | ||
Royal Bank of Canada, 1.15%, 6/10/2025 | 2,774,000 | 2,566,409 | ||
State Street Corp., 2.901% to 3/30/2025, FLR (SOFR + 2.6%) to 3/30/2026 | 344,000 | 332,942 | ||
Sumitomo Mitsui Financial Group, Inc., 2.472%, 1/14/2029 | 5,230,000 | 4,554,710 | ||
UBS Group AG, 2.095% to 2/11/2031, FLR (CMT - 1yr. + 1.0%) to 2/11/2032 (n) | 6,416,000 | 5,094,184 | ||
Wells Fargo & Co., 3.35% to 3/02/2032, FLR (SOFR - 1 day + 1.5%) to 3/02/2033 | 5,150,000 | 4,570,446 | ||
$59,645,959 | ||||
Medical & Health Technology & Services – 0.3% | ||||
Alcon, Inc., 2.6%, 5/27/2030 (n) | $ | 302,000 | $ 256,784 | |
Cigna Corp., 3.2%, 3/15/2040 | 474,000 | 374,159 | ||
HCA, Inc., 4.125%, 6/15/2029 | 1,809,000 | 1,649,420 | ||
HCA, Inc., 5.125%, 6/15/2039 | 1,932,000 | 1,690,721 | ||
Laboratory Corp. of America Holdings, 4.7%, 2/01/2045 | 980,000 | 870,296 | ||
Northwell Healthcare, Inc., 3.979%, 11/01/2046 | 153,000 | 132,919 | ||
Northwell Healthcare, Inc., 4.26%, 11/01/2047 | 1,205,000 | 1,104,464 | ||
$6,078,763 | ||||
Medical Equipment – 0.1% | ||||
Boston Scientific Corp., 2.65%, 6/01/2030 | $ | 1,590,000 | $ 1,387,378 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Metals & Mining – 0.4% | ||||
Anglo American Capital PLC, 3.875%, 3/16/2029 (n) | $ | 496,000 | $ 456,163 | |
Anglo American Capital PLC, 5.625%, 4/01/2030 (n) | 1,394,000 | 1,403,748 | ||
Anglo American Capital PLC, 2.625%, 9/10/2030 (n) | 4,564,000 | 3,755,840 | ||
Glencore Funding LLC, 4.125%, 5/30/2023 (n) | 1,244,000 | 1,239,758 | ||
Glencore Funding LLC, 2.5%, 9/01/2030 (n) | 1,695,000 | 1,380,786 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 709,000 | 585,364 | ||
$8,821,659 | ||||
Midstream – 0.4% | ||||
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029 | $ | 1,833,000 | $ 1,676,649 | |
Enbridge, Inc., 2.5%, 1/15/2025 | 969,000 | 932,374 | ||
Kinder Morgan Energy Partners LP, 4.15%, 2/01/2024 | 1,030,000 | 1,030,173 | ||
ONEOK, Inc., 4.95%, 7/13/2047 | 2,331,000 | 1,987,377 | ||
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 1,881,000 | 1,662,660 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 512,000 | 490,659 | ||
Spectra Energy Partners LP, 3.375%, 10/15/2026 | 828,000 | 787,514 | ||
Targa Resources Corp., 4.2%, 2/01/2033 | 746,000 | 675,760 | ||
$9,243,166 | ||||
Mortgage-Backed – 11.2% | ||||
Fannie Mae, 5%, 12/01/2023 - 3/01/2041 | $ | 1,894,988 | $ 1,987,649 | |
Fannie Mae, 3%, 11/01/2028 - 9/01/2046 | 3,606,509 | 3,554,684 | ||
Fannie Mae, 6.5%, 6/01/2031 - 7/01/2037 | 791,055 | 841,940 | ||
Fannie Mae, 2.5%, 11/01/2031 | 71,196 | 69,831 | ||
Fannie Mae, 5.5%, 2/01/2033 - 4/01/2040 | 4,739,369 | 5,011,926 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 334,427 | 32,167 | ||
Fannie Mae, 4.5%, 8/01/2033 - 6/01/2044 | 4,165,243 | 4,292,008 | ||
Fannie Mae, 6%, 1/01/2034 - 7/01/2037 | 2,544,253 | 2,717,428 | ||
Fannie Mae, 3.5%, 4/01/2038 - 7/01/2046 | 11,005,248 | 10,794,797 | ||
Fannie Mae, 3.25%, 5/25/2040 | 107,402 | 105,131 | ||
Fannie Mae, 4%, 9/01/2040 - 6/01/2047 | 7,660,507 | 7,741,356 | ||
Fannie Mae, 2%, 10/25/2040 - 4/25/2046 | 314,627 | 301,765 | ||
Fannie Mae, 4%, 7/25/2046 (i) | 333,760 | 63,182 | ||
Fannie Mae, UMBS, 1.5%, 2/01/2042 | 146,951 | 125,898 | ||
Fannie Mae, UMBS, 2%, 2/01/2042 - 3/01/2052 | 14,581,829 | 12,838,894 | ||
Fannie Mae, UMBS, 2.5%, 3/01/2042 - 4/01/2052 | 25,296,448 | 22,910,554 | ||
Fannie Mae, UMBS, 3%, 6/01/2051 - 1/01/2052 | 4,298,616 | 4,029,974 | ||
Fannie Mae, UMBS, 3.5%, 5/01/2052 | 622,952 | 600,340 | ||
Freddie Mac, 2.51%, 11/25/2022 | 1,388,755 | 1,387,370 | ||
Freddie Mac, 3.111%, 2/25/2023 | 2,089,854 | 2,088,062 | ||
Freddie Mac, 3.32%, 2/25/2023 | 712,851 | 712,483 | ||
Freddie Mac, 3.25%, 4/25/2023 - 11/25/2061 | 3,062,753 | 3,033,827 | ||
Freddie Mac, 3.06%, 7/25/2023 | 175,000 | 174,771 | ||
Freddie Mac, 3.458%, 8/25/2023 | 1,639,555 | 1,639,893 | ||
Freddie Mac, 1.031%, 4/25/2024 (i) | 4,457,707 | 60,021 | ||
Freddie Mac, 0.635%, 7/25/2024 (i) | 14,179,000 | 143,032 | ||
Freddie Mac, 0.73%, 7/25/2024 (i) | 4,862,819 | 39,236 | ||
Freddie Mac, 4.5%, 8/01/2024 - 5/01/2042 | 765,680 | 790,031 | ||
Freddie Mac, 0.432%, 8/25/2024 (i) | 15,246,000 | 130,239 | ||
Freddie Mac, 0.501%, 8/25/2024 (i) | 25,041,472 | 186,809 | ||
Freddie Mac, 3.064%, 8/25/2024 | 780,121 | 775,262 | ||
Freddie Mac, 0.469%, 10/25/2024 (i) | 18,348,178 | 117,164 | ||
Freddie Mac, 3.171%, 10/25/2024 | 1,304,000 | 1,296,771 | ||
Freddie Mac, 0.397%, 11/25/2024 (i) | 15,385,000 | 98,918 | ||
Freddie Mac, 2.67%, 12/25/2024 | 1,561,000 | 1,532,575 | ||
Freddie Mac, 3.329%, 5/25/2025 | 2,610,000 | 2,600,417 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Freddie Mac, 3.01%, 7/25/2025 | $ | 423,000 | $ 417,631 | |
Freddie Mac, 0.775%, 6/25/2027 (i) | 13,682,000 | 412,837 | ||
Freddie Mac, 0.887%, 6/25/2027 (i) | 4,644,719 | 144,297 | ||
Freddie Mac, 0.711%, 7/25/2027 (i) | 11,951,753 | 298,748 | ||
Freddie Mac, 0.46%, 8/25/2027 (i) | 9,650,000 | 163,623 | ||
Freddie Mac, 0.558%, 8/25/2027 (i) | 6,570,174 | 126,580 | ||
Freddie Mac, 0.406%, 9/25/2027 (i) | 10,419,000 | 155,142 | ||
Freddie Mac, 0.324%, 11/25/2027 (i) | 16,290,000 | 180,237 | ||
Freddie Mac, 0.417%, 11/25/2027 (i) | 11,546,556 | 155,526 | ||
Freddie Mac, 0.457%, 11/25/2027 (i) | 10,324,260 | 162,412 | ||
Freddie Mac, 0.375%, 12/25/2027 (i) | 10,109,000 | 137,493 | ||
Freddie Mac, 0.414%, 12/25/2027 (i) | 11,210,000 | 180,158 | ||
Freddie Mac, 0.492%, 12/25/2027 (i) | 17,628,437 | 308,341 | ||
Freddie Mac, 1.218%, 7/25/2029 (i) | 828,262 | 53,050 | ||
Freddie Mac, 1.268%, 8/25/2029 (i) | 5,202,722 | 346,805 | ||
Freddie Mac, 1.914%, 4/25/2030 (i) | 900,000 | 105,454 | ||
Freddie Mac, 1.984%, 4/25/2030 (i) | 2,701,417 | 326,886 | ||
Freddie Mac, 1.766%, 5/25/2030 (i) | 1,301,002 | 143,375 | ||
Freddie Mac, 1.905%, 5/25/2030 (i) | 3,334,078 | 395,770 | ||
Freddie Mac, 1.436%, 6/25/2030 (i) | 1,327,631 | 118,351 | ||
Freddie Mac, 1.704%, 8/25/2030 (i) | 1,191,673 | 129,112 | ||
Freddie Mac, 1.262%, 9/25/2030 (i) | 775,587 | 62,653 | ||
Freddie Mac, 1.172%, 11/25/2030 (i) | 1,356,411 | 103,035 | ||
Freddie Mac, 0.422%, 1/25/2031 (i) | 5,327,653 | 118,442 | ||
Freddie Mac, 0.873%, 1/25/2031 (i) | 2,233,850 | 125,279 | ||
Freddie Mac, 1.026%, 1/25/2031 (i) | 1,493,151 | 99,316 | ||
Freddie Mac, 0.613%, 3/25/2031 (i) | 4,293,012 | 152,870 | ||
Freddie Mac, 0.828%, 3/25/2031 (i) | 1,837,683 | 97,982 | ||
Freddie Mac, 1.333%, 5/25/2031 (i) | 822,353 | 73,365 | ||
Freddie Mac, 1.039%, 7/25/2031 (i) | 1,237,840 | 86,575 | ||
Freddie Mac, 0.607%, 8/25/2031 (i) | 1,665,239 | 63,849 | ||
Freddie Mac, 0.632%, 9/25/2031 (i) | 5,442,448 | 216,820 | ||
Freddie Mac, 0.955%, 9/25/2031 (i) | 1,567,181 | 102,329 | ||
Freddie Mac, 0.441%, 11/25/2031 (i) | 8,030,040 | 236,460 | ||
Freddie Mac, 0.597%, 12/25/2031 (i) | 7,179,988 | 283,830 | ||
Freddie Mac, 0.664%, 12/25/2031 (i) | 12,162,189 | 532,901 | ||
Freddie Mac, 0.436%, 11/25/2032 (i) | 8,494,032 | 195,874 | ||
Freddie Mac, 5%, 9/01/2033 - 1/15/2040 | 1,024,920 | 1,076,846 | ||
Freddie Mac, 5.5%, 12/01/2033 - 2/01/2037 | 725,861 | 769,113 | ||
Freddie Mac, 6%, 4/01/2034 - 6/01/2037 | 934,257 | 1,004,797 | ||
Freddie Mac, 6.5%, 5/01/2034 - 7/01/2037 | 467,293 | 493,864 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 62,846 | 10,746 | ||
Freddie Mac, 4%, 8/01/2037 - 4/01/2044 | 2,580,890 | 2,608,055 | ||
Freddie Mac, 3.5%, 11/01/2037 - 10/25/2058 | 6,859,747 | 6,752,125 | ||
Freddie Mac, 3%, 1/01/2038 - 2/25/2059 | 9,590,124 | 9,155,458 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 55,037 | 5,096 | ||
Freddie Mac, 4%, 8/15/2044 (i) | 72,038 | 8,584 | ||
Freddie Mac, UMBS, 6.5%, 10/01/2034 | 26,503 | 28,200 | ||
Freddie Mac, UMBS, 5%, 10/01/2035 | 152,742 | 160,249 | ||
Freddie Mac, UMBS, 6%, 1/01/2036 - 3/01/2036 | 68,988 | 72,686 | ||
Freddie Mac, UMBS, 2%, 2/01/2042 - 5/01/2052 | 24,938,384 | 21,720,464 | ||
Freddie Mac, UMBS, 3.5%, 12/01/2046 - 5/01/2052 | 1,433,478 | 1,397,290 | ||
Freddie Mac, UMBS, 3%, 7/01/2047 - 1/01/2052 | 1,583,628 | 1,481,019 | ||
Freddie Mac, UMBS, 4%, 8/01/2047 - 5/01/2052 | 1,619,276 | 1,615,748 | ||
Freddie Mac, UMBS, 2.5%, 4/01/2048 - 3/01/2052 | 3,998,035 | 3,612,340 | ||
Ginnie Mae, 6%, 9/15/2032 - 1/15/2038 | 1,097,248 | 1,193,971 | ||
Ginnie Mae, 5.5%, 5/15/2033 - 10/15/2035 | 649,837 | 702,558 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Ginnie Mae, 4.5%, 7/20/2033 - 9/20/2041 | $ | 1,419,099 | $ 1,479,641 | |
Ginnie Mae, 5%, 7/20/2033 - 12/15/2034 | 208,115 | 219,797 | ||
Ginnie Mae, 4%, 1/20/2041 - 2/20/2042 | 1,570,019 | 1,592,127 | ||
Ginnie Mae, 3.5%, 12/15/2041 - 3/20/2048 | 3,933,361 | 3,897,163 | ||
Ginnie Mae, 3%, 4/20/2045 - 2/20/2052 | 6,631,478 | 6,317,342 | ||
Ginnie Mae, 2.5%, 8/20/2051 - 11/20/2051 | 8,867,194 | 8,144,391 | ||
Ginnie Mae, 2%, 1/20/2052 | 2,890,440 | 2,571,310 | ||
Ginnie Mae, 0.585%, 2/16/2059 (i) | 2,471,561 | 94,775 | ||
Ginnie Mae, TBA, 3%, 7/21/2052 | 2,350,000 | 2,215,059 | ||
Ginnie Mae, TBA, 3.5%, 7/21/2052 | 3,800,000 | 3,691,938 | ||
Ginnie Mae, TBA, 5%, 7/21/2052 | 3,925,000 | 4,021,898 | ||
Ginnie Mae, TBA, 4.5%, 8/15/2052 | 7,650,000 | 7,731,879 | ||
Ginnie Mae, TBA, 4%, 8/18/2052 | 6,536,306 | 6,492,263 | ||
UMBS, TBA, 2.5%, 7/25/2037 - 8/11/2052 | 17,625,000 | 15,984,487 | ||
UMBS, TBA, 2%, 8/16/2037 - 8/11/2052 | 19,325,000 | 17,401,611 | ||
UMBS, TBA, 3%, 8/16/2037 | 100,000 | 97,543 | ||
UMBS, TBA, 3.5%, 7/14/2052 | 2,500,000 | 2,404,102 | ||
UMBS, TBA, 5%, 7/14/2052 | 1,550,000 | 1,581,969 | ||
UMBS, TBA, 4%, 7/25/2052 | 2,525,000 | 2,489,837 | ||
UMBS, TBA, 5.5%, 8/11/2052 | 300,000 | 310,500 | ||
$244,448,654 | ||||
Municipals – 0.4% | ||||
New Jersey Economic Development Authority State Pension Funding Rev., Taxable, “A”, NPFG, 7.425%, 2/15/2029 | $ | 2,750,000 | $ 3,089,540 | |
New Jersey Turnpike Authority Rev., Taxable (Build America Bonds), “F”, 7.414%, 1/01/2040 | 3,685,000 | 4,890,392 | ||
State of Florida, Taxable, “A”, 2.154%, 7/01/2030 | 1,437,000 | 1,248,362 | ||
$9,228,294 | ||||
Natural Gas - Distribution – 0.0% | ||||
NiSource, Inc., 5.65%, 2/01/2045 | $ | 414,000 | $ 415,397 | |
Natural Gas - Pipeline – 0.2% | ||||
APT Pipelines Ltd., 4.2%, 3/23/2025 (n) | $ | 3,344,000 | $ 3,315,919 | |
APT Pipelines Ltd., 4.25%, 7/15/2027 (n) | 253,000 | 246,054 | ||
$3,561,973 | ||||
Network & Telecom – 0.3% | ||||
AT&T, Inc., 3.65%, 9/15/2059 | $ | 1,786,000 | $ 1,337,621 | |
Verizon Communications, Inc., 2.1%, 3/22/2028 | 273,000 | 242,485 | ||
Verizon Communications, Inc., 3.15%, 3/22/2030 | 1,053,000 | 957,383 | ||
Verizon Communications, Inc., 4.272%, 1/15/2036 | 1,477,000 | 1,390,623 | ||
Verizon Communications, Inc., 4.812%, 3/15/2039 | 1,877,000 | 1,842,217 | ||
$5,770,329 | ||||
Oils – 0.2% | ||||
Phillips 66 Co., 2.15%, 12/15/2030 | $ | 2,934,000 | $ 2,396,604 | |
Valero Energy Corp., 6.625%, 6/15/2037 | 2,124,000 | 2,307,658 | ||
$4,704,262 | ||||
Other Banks & Diversified Financials – 0.4% | ||||
BBVA Bancomer S.A. de C.V., 6.75%, 9/30/2022 (n) | $ | 2,890,000 | $ 2,894,581 | |
Macquarie Group Ltd., 4.442% to 6/21/2032, FLR (SOFR - 1 day + 2.405%) to 6/21/2033 (n) | 5,881,000 | 5,438,628 | ||
$8,333,209 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Pollution Control – 0.0% | ||||
Republic Services, Inc., 1.45%, 2/15/2031 | $ | 851,000 | $ 668,059 | |
Real Estate - Office – 0.0% | ||||
Boston Properties Ltd. LP, REIT, 2.55%, 4/01/2032 | $ | 1,316,000 | $ 1,047,330 | |
Real Estate - Retail – 0.1% | ||||
Brixmor Operating Partnership LP, REIT, 4.125%, 5/15/2029 | $ | 172,000 | $ 160,231 | |
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | 1,681,000 | 1,516,715 | ||
Realty Income Corp., REIT, 3.25%, 1/15/2031 | 485,000 | 440,899 | ||
$2,117,845 | ||||
Retailers – 0.2% | ||||
Alimentation Couche-Tard, Inc., 3.439%, 5/13/2041 (n) | $ | 2,106,000 | $ 1,575,396 | |
Best Buy Co., Inc., 4.45%, 10/01/2028 | 1,738,000 | 1,708,503 | ||
$3,283,899 | ||||
Specialty Stores – 0.1% | ||||
Genuine Parts Co., 2.75%, 2/01/2032 | $ | 2,771,000 | $ 2,292,488 | |
Telecommunications - Wireless – 0.7% | ||||
American Tower Corp., REIT, 3%, 6/15/2023 | $ | 736,000 | $ 728,197 | |
American Tower Corp., REIT, 3.6%, 1/15/2028 | 923,000 | 863,012 | ||
American Tower Trust I, REIT, 3.07%, 3/15/2023 (n) | 3,121,000 | 3,107,565 | ||
Crown Castle International Corp., REIT, 1.35%, 7/15/2025 | 701,000 | 640,749 | ||
Crown Castle International Corp., REIT, 3.65%, 9/01/2027 | 2,565,000 | 2,429,177 | ||
Rogers Communications, Inc., 3.8%, 3/15/2032 (n) | 5,197,000 | 4,752,189 | ||
T-Mobile USA, Inc., 2.05%, 2/15/2028 | 1,892,000 | 1,642,615 | ||
T-Mobile USA, Inc., 4.5%, 4/15/2050 | 2,244,000 | 1,991,109 | ||
$16,154,613 | ||||
Tobacco – 0.2% | ||||
B.A.T. International Finance PLC, 4.448%, 3/16/2028 | $ | 4,200,000 | $ 3,975,962 | |
Transportation - Services – 0.1% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 1,826,000 | $ 2,141,593 | |
U.S. Government Agencies and Equivalents – 0.0% | ||||
Small Business Administration, 4.35%, 7/01/2023 | $ | 442 | $ 443 | |
Small Business Administration, 4.77%, 4/01/2024 | 33,622 | 33,513 | ||
Small Business Administration, 5.18%, 5/01/2024 | 43,268 | 43,447 | ||
Small Business Administration, 5.52%, 6/01/2024 | 2,134 | 2,134 | ||
Small Business Administration, 4.99%, 9/01/2024 | 61,828 | 61,321 | ||
Small Business Administration, 4.95%, 3/01/2025 | 2,214 | 2,188 | ||
Small Business Administration, 5.11%, 8/01/2025 | 205,888 | 205,703 | ||
$348,749 | ||||
U.S. Treasury Obligations – 8.7% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 | $ | 5,500,000 | $ 3,961,074 | |
U.S. Treasury Bonds, 1.75%, 8/15/2041 | 4,700,000 | 3,575,121 | ||
U.S. Treasury Bonds, 2.375%, 2/15/2042 | 4,000,000 | 3,391,875 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2043 | 9,096,000 | 8,294,415 | ||
U.S. Treasury Bonds, 2.5%, 2/15/2045 | 9,797,000 | 8,309,081 | ||
U.S. Treasury Bonds, 3%, 11/15/2045 | 3,638,000 | 3,380,498 | ||
U.S. Treasury Bonds, 3%, 2/15/2048 | 7,000,000 | 6,595,312 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2049 | 900,000 | 839,145 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – continued | ||||
U.S. Treasury Bonds, 2.375%, 11/15/2049 (f) | $ | 43,390,000 | $ 36,647,601 | |
U.S. Treasury Bonds, 2.25%, 2/15/2052 | 4,400,000 | 3,621,062 | ||
U.S. Treasury Notes, 1.375%, 1/31/2025 | 57,500,000 | 55,148,340 | ||
U.S. Treasury Notes, 0.375%, 11/30/2025 | 62,900,000 | 57,450,305 | ||
$191,213,829 | ||||
Utilities - Electric Power – 0.6% | ||||
American Transmission Systems, Inc., 2.65%, 1/15/2032 (n) | $ | 250,000 | $ 211,737 | |
Duke Energy Corp., 2.65%, 9/01/2026 | 294,000 | 275,346 | ||
Enel Finance International N.V., 2.65%, 9/10/2024 | 1,020,000 | 987,778 | ||
Enel Finance International N.V., 4.75%, 5/25/2047 (n) | 392,000 | 333,864 | ||
Evergy, Inc., 2.9%, 9/15/2029 | 1,644,000 | 1,450,907 | ||
Exelon Corp., 4.05%, 4/15/2030 | 1,632,000 | 1,566,043 | ||
FirstEnergy Corp., 3.4%, 3/01/2050 | 1,078,000 | 730,776 | ||
Georgia Power Co., 3.7%, 1/30/2050 | 147,000 | 116,711 | ||
Jersey Central Power & Light Co., 4.3%, 1/15/2026 (n) | 1,333,000 | 1,316,580 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 924,000 | 785,912 | ||
Oncor Electric Delivery Co. LLC, 5.75%, 3/15/2029 | 2,121,000 | 2,291,117 | ||
Pacific Gas & Electric Co., 2.1%, 8/01/2027 | 480,000 | 402,368 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 1,410,000 | 1,214,771 | ||
Pacific Gas & Electric Co., 3.3%, 8/01/2040 | 926,000 | 638,444 | ||
Xcel Energy, Inc., 3.4%, 6/01/2030 | 968,000 | 889,454 | ||
$13,211,808 | ||||
Utilities - Gas – 0.0% | ||||
East Ohio Gas Co., 2%, 6/15/2030 (n) | $ | 1,135,000 | $ 943,390 | |
Total Bonds (Identified Cost, $934,305,634) | $861,046,057 | |||
Convertible Preferred Stocks – 0.8% | ||||
Automotive – 0.2% | ||||
Aptiv PLC, 5.5% | 39,000 | $ 4,110,210 | ||
Medical Equipment – 0.3% | ||||
Boston Scientific Corp., 5.5% | 66,836 | $ 6,779,844 | ||
Telecommunications - Wireless – 0.3% | ||||
T-Mobile USA, Inc., 5.25% (a) | 5,432 | $ 6,280,718 | ||
Total Convertible Preferred Stocks (Identified Cost, $16,057,351) | $17,170,772 | |||
Preferred Stocks – 0.6% | ||||
Computer Software - Systems – 0.2% | ||||
Samsung Electronics Co. Ltd. | 99,890 | $ 4,000,524 | ||
Consumer Products – 0.4% | ||||
Henkel AG & Co. KGaA | 163,228 | $ 10,054,600 | ||
Total Preferred Stocks (Identified Cost, $17,473,264) | $14,055,124 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 3.9% | ||||
Money Market Funds – 3.9% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $85,449,671) | 85,450,726 | $ 85,442,181 | ||
Other Assets, Less Liabilities – (2.9)% | (62,613,355) | |||
Net Assets – 100.0% | $2,191,510,911 |
(a) | Non-income producing security. |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $85,442,181 and $2,168,682,085, respectively. |
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $182,928,025, representing 8.3% of net assets. |
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
ReadyCap Commercial Mortgage Trust, 2021-FL5, “A”, FLR, 2.623% (LIBOR - 1mo. + 1%), 4/25/2038 | 3/19/2021 | $2,769,729 | $2,704,929 |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “B”, FLR, 3.424% (LIBOR - 1mo. + 1.8%), 11/25/2036 | 11/12/2021 | 1,130,000 | 1,052,253 |
Total Restricted Securities | $3,757,182 | ||
% of Net assets | 0.2% |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FGIC | Financial Guaranty Insurance Co. |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced |
UMBS | Uniform Mortgage-Backed Security |
Derivative Contracts at 6/30/22 | ||||||
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Ultra Note 10 yr | Short | USD | 106 | $13,501,750 | September – 2022 | $215,131 |
Futures Contracts - continued | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 72 | $15,121,125 | September – 2022 | $(104,604) |
U.S. Treasury Note 5 yr | Long | USD | 559 | 62,747,750 | September – 2022 | (205,678) |
U.S. Treasury Ultra Bond | Long | USD | 92 | 14,199,625 | September – 2022 | (418,985) |
$(729,267) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,787,131,333) | $2,168,682,085 |
Investments in affiliated issuers, at value (identified cost, $85,449,671) | 85,442,181 |
Cash | 654 |
Restricted cash for MBS/TBA | 359,000 |
Receivables for | |
Net daily variation margin on open futures contracts | 105,150 |
TBA sale commitments | 25,692,331 |
Fund shares sold | 353,778 |
Interest and dividends | 7,455,553 |
Receivable from investment adviser | 103,124 |
Other assets | 3,316 |
Total assets | $2,288,197,172 |
Liabilities | |
Payables for | |
TBA purchase commitments | $90,682,443 |
Fund shares reacquired | 5,660,044 |
Payable to affiliates | |
Administrative services fee | 2,075 |
Shareholder servicing costs | 754 |
Distribution and/or service fees | 16,178 |
Payable for independent Trustees' compensation | 224 |
Accrued expenses and other liabilities | 324,543 |
Total liabilities | $96,686,261 |
Net assets | $2,191,510,911 |
Net assets consist of | |
Paid-in capital | $1,507,708,427 |
Total distributable earnings (loss) | 683,802,484 |
Net assets | $2,191,510,911 |
Shares of beneficial interest outstanding | 91,593,556 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,015,452,197 | 41,913,102 | $24.23 |
Service Class | 1,176,058,714 | 49,680,454 | 23.67 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $16,080,452 |
Interest | 11,428,986 |
Dividends from affiliated issuers | 141,044 |
Other | 18,372 |
Income on securities loaned | 2,691 |
Foreign taxes withheld | (217,929) |
Total investment income | $27,453,616 |
Expenses | |
Management fee | $8,151,056 |
Distribution and/or service fees | 1,612,688 |
Shareholder servicing costs | 35,262 |
Administrative services fee | 187,523 |
Independent Trustees' compensation | 18,671 |
Custodian fee | 61,795 |
Shareholder communications | 44,798 |
Audit and tax fees | 41,326 |
Legal fees | 5,961 |
Miscellaneous | 37,352 |
Total expenses | $10,196,432 |
Reduction of expenses by investment adviser | (1,153,526) |
Net expenses | $9,042,906 |
Net investment income (loss) | $18,410,710 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $61,869,281 |
Affiliated issuers | (4,377) |
Futures contracts | (1,360,199) |
Foreign currency | (26,155) |
Net realized gain (loss) | $60,478,550 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(414,171,038) |
Affiliated issuers | (7,490) |
Futures contracts | (300,169) |
Translation of assets and liabilities in foreign currencies | (49,800) |
Net unrealized gain (loss) | $(414,528,497) |
Net realized and unrealized gain (loss) | $(354,049,947) |
Change in net assets from operations | $(335,639,237) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $18,410,710 | $34,332,222 |
Net realized gain (loss) | 60,478,550 | 199,577,748 |
Net unrealized gain (loss) | (414,528,497) | 110,529,875 |
Change in net assets from operations | $(335,639,237) | $344,439,845 |
Total distributions to shareholders | $— | $(173,338,152) |
Change in net assets from fund share transactions | $(154,647,791) | $(28,062,297) |
Total change in net assets | $(490,287,028) | $143,039,396 |
Net assets | ||
At beginning of period | 2,681,797,939 | 2,538,758,543 |
At end of period | $2,191,510,911 | $2,681,797,939 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $27.78 | $26.02 | $24.90 | $21.78 | $24.70 | $23.18 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.21 | $0.39 | $0.47 | $0.52 | $0.53 | $0.49 |
Net realized and unrealized gain (loss) | (3.76) | 3.24 | 1.88 | 3.83 | (1.80) | 2.29 |
Total from investment operations | $(3.55) | $3.63 | $2.35 | $4.35 | $(1.27) | $2.78 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.51) | $(0.57) | $(0.58) | $(0.54) | $(0.58) |
From net realized gain | — | (1.36) | (0.66) | (0.65) | (1.11) | (0.68) |
Total distributions declared to shareholders | $— | $(1.87) | $(1.23) | $(1.23) | $(1.65) | $(1.26) |
Net asset value, end of period (x) | $24.23 | $27.78 | $26.02 | $24.90 | $21.78 | $24.70 |
Total return (%) (k)(r)(s)(x) | (12.78)(n) | 14.12 | 9.81 | 20.38 | (5.61) | 12.30 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.71(a) | 0.70 | 0.71 | 0.70 | 0.70 | 0.71 |
Expenses after expense reductions | 0.61(a) | 0.61 | 0.61 | 0.62 | 0.62 | 0.63 |
Net investment income (loss) | 1.64(a) | 1.43 | 1.95 | 2.18 | 2.20 | 2.04 |
Portfolio turnover | 43(n) | 98 | 84 | 42 | 26 | 34 |
Net assets at end of period (000 omitted) | $1,015,452 | $1,274,331 | $1,219,438 | $1,223,166 | $1,134,301 | $1,350,737 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $27.18 | $25.50 | $24.43 | $21.38 | $24.28 | $22.81 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.18 | $0.32 | $0.40 | $0.45 | $0.46 | $0.43 |
Net realized and unrealized gain (loss) | (3.69) | 3.17 | 1.83 | 3.76 | (1.77) | 2.25 |
Total from investment operations | $(3.51) | $3.49 | $2.23 | $4.21 | $(1.31) | $2.68 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.45) | $(0.50) | $(0.51) | $(0.48) | $(0.53) |
From net realized gain | — | (1.36) | (0.66) | (0.65) | (1.11) | (0.68) |
Total distributions declared to shareholders | $— | $(1.81) | $(1.16) | $(1.16) | $(1.59) | $(1.21) |
Net asset value, end of period (x) | $23.67 | $27.18 | $25.50 | $24.43 | $21.38 | $24.28 |
Total return (%) (k)(r)(s)(x) | (12.91)(n) | 13.84 | 9.52 | 20.12 | (5.87) | 12.02 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.96(a) | 0.95 | 0.96 | 0.95 | 0.95 | 0.96 |
Expenses after expense reductions | 0.86(a) | 0.86 | 0.86 | 0.87 | 0.87 | 0.88 |
Net investment income (loss) | 1.40(a) | 1.17 | 1.71 | 1.93 | 1.95 | 1.79 |
Portfolio turnover | 43(n) | 98 | 84 | 42 | 26 | 34 |
Net assets at end of period (000 omitted) | $1,176,059 | $1,407,467 | $1,319,320 | $1,323,813 | $1,191,222 | $1,427,824 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $1,244,247,189 | $6,280,718 | $— | $1,250,527,907 |
Germany | 17,827,949 | — | — | 17,827,949 |
Switzerland | 10,407,891 | — | — | 10,407,891 |
Taiwan | 7,797,479 | — | — | 7,797,479 |
Ireland | 7,322,509 | — | — | 7,322,509 |
France | 6,029,846 | — | — | 6,029,846 |
South Korea | 4,000,524 | — | — | 4,000,524 |
United Kingdom | 3,721,923 | — | — | 3,721,923 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | — | 191,562,578 | — | 191,562,578 |
Non - U.S. Sovereign Debt | — | 6,380,672 | — | 6,380,672 |
Municipal Bonds | — | 9,228,294 | — | 9,228,294 |
U.S. Corporate Bonds | — | 193,795,277 | — | 193,795,277 |
Residential Mortgage-Backed Securities | — | 244,631,938 | — | 244,631,938 |
Commercial Mortgage-Backed Securities | — | 46,655,532 | — | 46,655,532 |
Asset-Backed Securities (including CDOs) | — | 82,083,767 | — | 82,083,767 |
Foreign Bonds | — | 86,707,999 | — | 86,707,999 |
Mutual Funds | 85,442,181 | — | — | 85,442,181 |
Total | $1,386,797,491 | $867,326,775 | $— | $2,254,124,266 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $215,131 | $— | $— | $215,131 |
Futures Contracts – Liabilities | (729,267) | — | — | (729,267) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $215,131 | $(729,267) |
Risk | Futures Contracts |
Interest Rate | $(1,360,199) |
Risk | Futures Contracts |
Interest Rate | $(300,169) |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $54,055,887 |
Long-term capital gains | 119,282,265 |
Total distributions | $173,338,152 |
As of 6/30/22 | |
Cost of investments | $1,886,649,918 |
Gross appreciation | 479,260,653 |
Gross depreciation | (111,786,305) |
Net unrealized appreciation (depreciation) | $367,474,348 |
As of 12/31/21 | |
Undistributed ordinary income | 50,553,384 |
Undistributed long-term capital gain | 185,726,760 |
Other temporary differences | 32,617 |
Net unrealized appreciation (depreciation) | 783,128,960 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $83,092,525 | |
Service Class | — | 90,245,627 | |
Total | $— | $173,338,152 |
Up to $1 billion | 0.70% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion and up to $5 billion | 0.55% |
In excess of $5 billion | 0.50% |
Purchases | Sales | |
U.S. Government securities | $833,976,143 | $880,447,118 |
Non-U.S. Government securities | 217,192,810 | 318,138,940 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 486,918 | $12,785,241 | 1,346,454 | $36,950,675 | |
Service Class | 1,976,162 | 50,612,057 | 3,578,860 | 96,647,907 | |
2,463,080 | $63,397,298 | 4,925,314 | $133,598,582 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 3,053,750 | $83,092,525 | |
Service Class | — | — | 3,387,599 | 90,245,627 | |
— | $— | 6,441,349 | $173,338,152 | ||
Shares reacquired | |||||
Initial Class | (4,441,758) | $(114,439,784) | (5,396,442) | $(148,714,749) | |
Service Class | (4,079,653) | (103,605,305) | (6,922,547) | (186,284,282) | |
(8,521,411) | $(218,045,089) | (12,318,989) | $(334,999,031) | ||
Net change | |||||
Initial Class | (3,954,840) | $(101,654,543) | (996,238) | $(28,671,549) | |
Service Class | (2,103,491) | (52,993,248) | 43,912 | 609,252 | |
(6,058,331) | $(154,647,791) | (952,326) | $(28,062,297) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $146,917,118 | $334,319,509 | $395,782,579 | $(4,377) | $(7,490) | $85,442,181 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $141,044 | $— |
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
20 | |
21 | |
21 | |
21 | |
21 |
NextEra Energy, Inc. | 11.6% |
Dominion Energy, Inc. | 5.2% |
Sempra Energy | 5.2% |
Southern Co. | 4.8% |
Exelon Corp. | 3.7% |
PG&E Corp. | 3.7% |
American Electric Power Co., Inc. | 3.5% |
EDP Renovaveis S.A. | 3.4% |
DTE Energy Co. | 3.4% |
Edison International | 3.1% |
Utilities-Electric Power | 81.8% |
Energy - Renewables | 5.1% |
Telecommunications - Wireless | 5.0% |
Natural Gas - Distribution | 3.3% |
Cable TV | 1.9% |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.77% | $1,000.00 | $959.54 | $3.74 |
Hypothetical (h) | 0.77% | $1,000.00 | $1,020.98 | $3.86 | |
Service Class | Actual | 1.02% | $1,000.00 | $958.22 | $4.95 |
Hypothetical (h) | 1.02% | $1,000.00 | $1,019.74 | $5.11 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.3% | ||||
Cable TV – 2.0% | ||||
Charter Communications, Inc., “A” (a) | 50,363 | $ 23,596,576 | ||
Energy - Renewables – 5.1% | ||||
AES Corp. | 1,001,704 | $ 21,045,801 | ||
EDP Renovaveis S.A. | 1,749,703 | 41,292,700 | ||
$62,338,501 | ||||
Natural Gas - Distribution – 3.3% | ||||
Atmos Energy Corp. | 209,818 | $ 23,520,598 | ||
China Resources Gas Group Ltd. | 2,052,500 | 9,560,442 | ||
UGI Corp. | 182,535 | 7,047,676 | ||
$40,128,716 | ||||
Telecommunications - Wireless – 5.0% | ||||
Cellnex Telecom S.A. | 904,796 | $ 35,111,141 | ||
Rogers Communications, Inc., “B” | 226,125 | 10,835,449 | ||
SBA Communications Corp., REIT | 46,708 | 14,948,896 | ||
$60,895,486 | ||||
Telephone Services – 0.6% | ||||
Hellenic Telecommunications Organization S.A. | 435,158 | $ 7,556,315 | ||
Utilities - Electric Power – 81.3% | ||||
ALLETE, Inc. | 184,734 | $ 10,858,665 | ||
Alliant Energy Corp. | 333,717 | 19,559,153 | ||
Ameren Corp. | 261,465 | 23,625,977 | ||
American Electric Power Co., Inc. | 447,187 | 42,903,121 | ||
CenterPoint Energy, Inc. | 760,057 | 22,482,486 | ||
Constellation Energy | 417,073 | 23,881,600 | ||
Dominion Energy, Inc. | 795,344 | 63,476,405 | ||
DTE Energy Co. | 324,333 | 41,109,208 | ||
Duke Energy Corp. | 105,479 | 11,308,404 | ||
E.ON SE | 1,441,566 | 12,097,598 | ||
Edison International | 601,225 | 38,021,469 | ||
Electricite de France S.A. | 628,040 | 5,137,554 | ||
Emera, Inc. | 12,452 | 583,325 | ||
Enel S.p.A. | 4,908,218 | 26,849,420 | ||
Energias de Portugal S.A. | 3,171,763 | 14,797,776 | ||
Energisa S.A., IEU | 386,700 | 2,981,464 | ||
Entergy Corp. | 251,637 | 28,344,392 | ||
Equatorial Energia S.A. | 1,284,200 | 5,604,549 | ||
Evergy, Inc. | 406,419 | 26,518,840 | ||
Exelon Corp. | 988,099 | 44,780,649 | ||
FirstEnergy Corp. | 651,737 | 25,020,183 | ||
Iberdrola S.A. | 3,595,634 | 37,288,570 | ||
National Grid PLC | 1,139,325 | 14,590,195 | ||
Neoenergia S.A. | 1,119,300 | 3,191,003 | ||
NextEra Energy, Inc. | 1,818,027 | 140,824,372 | ||
PG&E Corp. (a) | 4,451,888 | 44,429,842 | ||
Pinnacle West Capital Corp. | 205,015 | 14,990,697 | ||
Portland General Electric Co. | 128,030 | 6,187,690 | ||
PPL Corp. | 685,279 | 18,591,619 | ||
Public Service Enterprise Group, Inc. | 360,520 | 22,813,706 | ||
RWE AG | 863,947 | 31,760,494 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – continued | ||||
Sempra Energy | 421,146 | $ 63,285,610 | ||
Southern Co. | 811,614 | 57,876,194 | ||
SSE PLC | 1,747,104 | 34,368,283 | ||
Vistra Corp. | 221,413 | 5,059,288 | ||
$985,199,801 | ||||
Total Common Stocks (Identified Cost, $902,588,936) | $1,179,715,395 | |||
Convertible Preferred Stocks – 0.5% | ||||
Utilities - Electric Power – 0.5% | ||||
DTE Energy Co., 6.25% | 64,750 | $ 3,329,445 | ||
NextEra Energy, Inc., 5.279% | 64,600 | 3,207,390 | ||
Total Convertible Preferred Stocks (Identified Cost, $5,480,871) | $6,536,835 | |||
Investment Companies (h) – 0.7% | ||||
Money Market Funds – 0.7% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $8,601,429) | 8,602,241 | $ 8,601,381 | ||
Other Assets, Less Liabilities – 1.5% | 17,744,834 | |||
Net Assets – 100.0% | $1,212,598,445 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $8,601,381 and $1,186,252,230, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
IEU | International Equity Unit |
REIT | Real Estate Investment Trust |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
CAD | Canadian Dollar |
EUR | Euro |
GBP | British Pound |
Derivative Contracts at 6/30/22 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
CAD | 2,073,418 | USD | 1,604,166 | Brown Brothers Harriman | 7/15/2022 | $6,679 |
CAD | 1,094,030 | USD | 839,703 | Citibank N.A. | 7/15/2022 | 10,254 |
CAD | 542,328 | USD | 416,718 | Merrill Lynch International | 7/15/2022 | 4,619 |
CAD | 2,388,127 | USD | 1,846,881 | Morgan Stanley Capital Services, Inc. | 7/15/2022 | 8,464 |
CAD | 524,204 | USD | 406,320 | Morgan Stanley Capital Services, Inc. | 9/21/2022 | 983 |
EUR | 415,411 | USD | 433,146 | Deutsche Bank AG | 7/15/2022 | 2,462 |
EUR | 451,715 | USD | 471,562 | State Street Bank Corp. | 7/15/2022 | 2,114 |
GBP | 208,470 | USD | 253,679 | Morgan Stanley Capital Services, Inc. | 7/15/2022 | 125 |
USD | 96,122 | CAD | 122,469 | HSBC Bank | 7/15/2022 | 975 |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives - continued | ||||||
USD | 15,739,587 | CAD | 19,720,565 | Merrill Lynch International | 7/15/2022 | $418,604 |
USD | 87,516,315 | EUR | 79,482,249 | BNP Paribas S.A. | 7/15/2022 | 4,169,841 |
USD | 1,311,140 | EUR | 1,236,325 | Brown Brothers Harriman | 7/15/2022 | 14,708 |
USD | 1,451,552 | EUR | 1,362,255 | Citibank N.A. | 7/15/2022 | 23,068 |
USD | 206,561 | EUR | 196,954 | HSBC Bank | 7/15/2022 | 31 |
USD | 64,239,667 | EUR | 58,647,884 | JPMorgan Chase Bank N.A. | 7/15/2022 | 2,740,472 |
USD | 1,450,669 | EUR | 1,340,492 | Morgan Stanley Capital Services, Inc. | 7/15/2022 | 45,006 |
USD | 3,747,405 | GBP | 2,989,000 | BNP Paribas S.A. | 7/15/2022 | 108,416 |
USD | 241,875 | GBP | 191,943 | Brown Brothers Harriman | 7/15/2022 | 8,192 |
USD | 32,058,710 | GBP | 24,446,862 | Deutsche Bank AG | 7/15/2022 | 2,295,628 |
USD | 3,095,417 | GBP | 2,359,934 | Merrill Lynch International | 7/15/2022 | 222,291 |
USD | 1,298,380 | GBP | 1,065,603 | State Street Bank Corp. | 7/15/2022 | 1,050 |
$10,083,982 | ||||||
Liability Derivatives | ||||||
CAD | 1,107,491 | USD | 866,032 | Brown Brothers Harriman | 7/15/2022 | $(5,619) |
CAD | 84,620 | USD | 67,735 | Deutsche Bank AG | 7/15/2022 | (1,994) |
CAD | 766,813 | USD | 595,995 | HSBC Bank | 9/21/2022 | (187) |
CAD | 979,871 | USD | 774,843 | Merrill Lynch International | 7/15/2022 | (13,577) |
CAD | 655,485 | USD | 509,554 | State Street Bank Corp. | 7/15/2022 | (306) |
EUR | 284,735 | USD | 298,760 | BNP Paribas S.A. | 7/15/2022 | (182) |
EUR | 366,065 | USD | 387,111 | Brown Brothers Harriman | 7/15/2022 | (3,249) |
EUR | 140,156 | USD | 154,782 | Citibank N.A. | 7/15/2022 | (7,811) |
EUR | 622,033 | USD | 681,151 | Deutsche Bank AG | 7/15/2022 | (28,876) |
EUR | 23,350 | USD | 25,571 | Morgan Stanley Capital Services, Inc. | 7/15/2022 | (1,086) |
GBP | 2,840,501 | USD | 3,487,687 | Brown Brothers Harriman | 7/15/2022 | (29,489) |
GBP | 113,795 | USD | 148,715 | Deutsche Bank AG | 7/15/2022 | (10,174) |
GBP | 2,200,547 | USD | 2,776,453 | Merrill Lynch International | 7/15/2022 | (97,374) |
USD | 620,031 | EUR | 592,045 | State Street Bank Corp. | 7/15/2022 | (797) |
$(200,721) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value (identified cost, $908,069,807) | $1,186,252,230 |
Investments in affiliated issuers, at value (identified cost, $8,601,429) | 8,601,381 |
Cash | 198,188 |
Receivables for | |
Forward foreign currency exchange contracts | 10,083,982 |
Investments sold | 8,049,903 |
Fund shares sold | 58,140 |
Dividends | 2,623,853 |
Other assets | 2,233 |
Total assets | $1,215,869,910 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $200,721 |
Investments purchased | 1,793,942 |
Fund shares reacquired | 921,809 |
Payable to affiliates | |
Investment adviser | 48,303 |
Administrative services fee | 1,165 |
Shareholder servicing costs | 773 |
Distribution and/or service fees | 9,202 |
Accrued expenses and other liabilities | 295,550 |
Total liabilities | $3,271,465 |
Net assets | $1,212,598,445 |
Net assets consist of | |
Paid-in capital | $791,895,354 |
Total distributable earnings (loss) | 420,703,091 |
Net assets | $1,212,598,445 |
Shares of beneficial interest outstanding | 33,371,807 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $541,035,752 | 14,719,700 | $36.76 |
Service Class | 671,562,693 | 18,652,107 | 36.00 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $18,071,139 |
Other | 31,851 |
Dividends from affiliated issuers | 13,061 |
Income on securities loaned | 6,332 |
Foreign taxes withheld | (576,498) |
Total investment income | $17,545,885 |
Expenses | |
Management fee | $4,630,200 |
Distribution and/or service fees | 864,130 |
Shareholder servicing costs | 30,403 |
Administrative services fee | 99,456 |
Independent Trustees' compensation | 9,761 |
Custodian fee | 68,286 |
Shareholder communications | 40,668 |
Audit and tax fees | 30,809 |
Legal fees | 2,760 |
Miscellaneous | 20,820 |
Total expenses | $5,797,293 |
Reduction of expenses by investment adviser | (88,170) |
Net expenses | $5,709,123 |
Net investment income (loss) | $11,836,762 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $273,402 country tax) | $40,615,466 |
Affiliated issuers | (907) |
Forward foreign currency exchange contracts | 10,785,650 |
Foreign currency | (55,113) |
Net realized gain (loss) | $51,345,096 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $311,433 decrease in deferred country tax) | $(123,562,254) |
Affiliated issuers | (48) |
Forward foreign currency exchange contracts | 6,349,502 |
Translation of assets and liabilities in foreign currencies | (105,462) |
Net unrealized gain (loss) | $(117,318,262) |
Net realized and unrealized gain (loss) | $(65,973,166) |
Change in net assets from operations | $(54,136,404) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $11,836,762 | $24,809,395 |
Net realized gain (loss) | 51,345,096 | 37,084,768 |
Net unrealized gain (loss) | (117,318,262) | 100,375,768 |
Change in net assets from operations | $(54,136,404) | $162,269,931 |
Total distributions to shareholders | $— | $(61,909,232) |
Change in net assets from fund share transactions | $(29,348,140) | $(21,147,055) |
Total change in net assets | $(83,484,544) | $79,213,644 |
Net assets | ||
At beginning of period | 1,296,082,989 | 1,216,869,345 |
At end of period | $1,212,598,445 | $1,296,082,989 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $38.31 | $35.33 | $35.18 | $29.38 | $29.50 | $26.81 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.38 | $0.78 | $0.87 | $0.90 | $0.89 | $0.81 |
Net realized and unrealized gain (loss) | (1.93) | 4.11 | 0.99 | 6.37 | (0.56) | 3.17 |
Total from investment operations | $(1.55) | $4.89 | $1.86 | $7.27 | $0.33 | $3.98 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.65) | $(0.84) | $(1.37) | $(0.33) | $(1.29) |
From net realized gain | — | (1.26) | (0.87) | (0.10) | (0.12) | — |
Total distributions declared to shareholders | $— | $(1.91) | $(1.71) | $(1.47) | $(0.45) | $(1.29) |
Net asset value, end of period (x) | $36.76 | $38.31 | $35.33 | $35.18 | $29.38 | $29.50 |
Total return (%) (k)(r)(s)(x) | (4.05)(n) | 14.09 | 5.90 | 25.07 | 1.06 | 14.83 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.79(a) | 0.79 | 0.80 | 0.79 | 0.78 | 0.80 |
Expenses after expense reductions | 0.77(a) | 0.77 | 0.79 | 0.78 | 0.78 | 0.79 |
Net investment income (loss) | 2.03(a) | 2.16 | 2.63 | 2.69 | 2.98 | 2.78 |
Portfolio turnover | 16(n) | 16 | 32 | 28 | 27 | 27 |
Net assets at end of period (000 omitted) | $541,036 | $584,216 | $537,240 | $556,301 | $492,930 | $561,744 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $37.58 | $34.69 | $34.56 | $28.86 | $28.98 | $26.37 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.33 | $0.68 | $0.77 | $0.80 | $0.81 | $0.73 |
Net realized and unrealized gain (loss) | (1.91) | 4.03 | 0.97 | 6.27 | (0.56) | 3.09 |
Total from investment operations | $(1.58) | $4.71 | $1.74 | $7.07 | $0.25 | $3.82 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.56) | $(0.74) | $(1.27) | $(0.25) | $(1.21) |
From net realized gain | — | (1.26) | (0.87) | (0.10) | (0.12) | — |
Total distributions declared to shareholders | $— | $(1.82) | $(1.61) | $(1.37) | $(0.37) | $(1.21) |
Net asset value, end of period (x) | $36.00 | $37.58 | $34.69 | $34.56 | $28.86 | $28.98 |
Total return (%) (k)(r)(s)(x) | (4.20)(n) | 13.82 | 5.62 | 24.80 | 0.81 | 14.49 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.04(a) | 1.04 | 1.05 | 1.04 | 1.04 | 1.05 |
Expenses after expense reductions | 1.02(a) | 1.02 | 1.04 | 1.03 | 1.03 | 1.04 |
Net investment income (loss) | 1.78(a) | 1.91 | 2.38 | 2.44 | 2.76 | 2.53 |
Portfolio turnover | 16(n) | 16 | 32 | 28 | 27 | 27 |
Net assets at end of period (000 omitted) | $671,563 | $711,867 | $679,629 | $733,992 | $727,201 | $1,021,211 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $1,186,252,230 | $— | $— | $1,186,252,230 |
Mutual Funds | 8,601,381 | — | — | 8,601,381 |
Total | $1,194,853,611 | $— | $— | $1,194,853,611 |
Other Financial Instruments | ||||
Forward Foreign Currency Exchange Contracts – Assets | $— | $10,083,982 | $— | $10,083,982 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (200,721) | — | (200,721) |
Fair Value | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | $10,083,092 | $(200,721) |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $10,785,650 |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $6,349,502 |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $19,917,214 |
Long-term capital gains | 41,992,018 |
Total distributions | $61,909,232 |
As of 6/30/22 | |
Cost of investments | $923,870,973 |
Gross appreciation | 279,426,177 |
Gross depreciation | (8,443,539) |
Net unrealized appreciation (depreciation) | $270,982,638 |
As of 12/31/21 | |
Undistributed ordinary income | 41,785,964 |
Undistributed long-term capital gain | 36,033,078 |
Other temporary differences | (6,459) |
Net unrealized appreciation (depreciation) | 397,026,912 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $28,006,297 | |
Service Class | — | 33,902,935 | |
Total | $— | $61,909,232 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $3 billion | 0.70% |
In excess of $3 billion | 0.65% |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 497,561 | $19,003,051 | 847,836 | $30,773,859 | |
Service Class | 1,567,192 | 59,075,958 | 1,266,913 | 45,089,704 | |
2,064,753 | $78,079,009 | 2,114,749 | $75,863,563 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 763,739 | $28,006,297 | |
Service Class | — | — | 941,748 | 33,902,935 | |
— | $— | 1,705,487 | $61,909,232 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares reacquired | |||||
Initial Class | (1,026,437) | $(38,628,394) | (1,570,699) | $(57,115,573) | |
Service Class | (1,859,750) | (68,798,755) | (2,857,934) | (101,804,277) | |
(2,886,187) | $(107,427,149) | (4,428,633) | $(158,919,850) | ||
Net change | |||||
Initial Class | (528,876) | $(19,625,343) | 40,876 | $1,664,583 | |
Service Class | (292,558) | (9,722,797) | (649,273) | (22,811,638) | |
(821,434) | $(29,348,140) | (608,397) | $(21,147,055) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $13,091,908 | $89,629,459 | $94,119,031 | $(907) | $(48) | $8,601,381 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $13,061 | $— |
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
18 | |
19 | |
19 | |
19 | |
19 |
Johnson & Johnson | 3.6% |
JPMorgan Chase & Co. | 3.4% |
Northrop Grumman Corp. | 2.8% |
Pfizer, Inc. | 2.7% |
Cigna Corp. | 2.6% |
Aon PLC | 2.4% |
Texas Instruments, Inc. | 2.3% |
Comcast Corp., “A” | 2.3% |
Marsh & McLennan Cos., Inc. | 2.3% |
Duke Energy Corp. | 2.3% |
Financials | 25.8% |
Health Care | 19.7% |
Industrials | 17.8% |
Utilities | 7.4% |
Information Technology | 6.8% |
Consumer Staples | 6.6% |
Materials | 4.0% |
Energy | 3.8% |
Communication Services | 3.5% |
Consumer Discretionary | 3.3% |
Real Estate | 0.4% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
January 1, 2022 through June 30, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/22 | Ending Account Value 6/30/22 | Expenses Paid During Period (p) 1/01/22-6/30/22 | |
Initial Class | Actual | 0.71% | $1,000.00 | $868.93 | $3.29 |
Hypothetical (h) | 0.71% | $1,000.00 | $1,021.27 | $3.56 | |
Service Class | Actual | 0.96% | $1,000.00 | $867.55 | $4.45 |
Hypothetical (h) | 0.96% | $1,000.00 | $1,020.03 | $4.81 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.1% | ||||
Aerospace & Defense – 6.8% | ||||
General Dynamics Corp. | 107,995 | $ 23,893,894 | ||
Honeywell International, Inc. | 292,975 | 50,921,984 | ||
Northrop Grumman Corp. | 141,960 | 67,937,797 | ||
Raytheon Technologies Corp. | 207,798 | 19,971,466 | ||
$162,725,141 | ||||
Alcoholic Beverages – 1.4% | ||||
Diageo PLC | 797,947 | $ 34,293,198 | ||
Brokerage & Asset Managers – 4.6% | ||||
BlackRock, Inc. | 54,806 | $ 33,379,046 | ||
Citigroup, Inc. | 577,201 | 26,545,474 | ||
KKR & Co., Inc. | 280,424 | 12,980,827 | ||
NASDAQ, Inc. | 240,053 | 36,617,685 | ||
$109,523,032 | ||||
Business Services – 3.4% | ||||
Accenture PLC, “A” | 190,361 | $ 52,853,731 | ||
Equifax, Inc. | 157,528 | 28,792,968 | ||
$81,646,699 | ||||
Cable TV – 3.5% | ||||
Charter Communications, Inc., “A” (a) | 61,019 | $ 28,589,232 | ||
Comcast Corp., “A” | 1,413,166 | 55,452,634 | ||
$84,041,866 | ||||
Chemicals – 1.4% | ||||
PPG Industries, Inc. | 282,648 | $ 32,317,972 | ||
Construction – 2.8% | ||||
Masco Corp. | 366,936 | $ 18,566,962 | ||
Otis Worldwide Corp. | 103,787 | 7,334,627 | ||
Sherwin-Williams Co. | 117,595 | 26,330,697 | ||
Stanley Black & Decker, Inc. | 148,347 | 15,555,666 | ||
$67,787,952 | ||||
Consumer Products – 2.6% | ||||
Colgate-Palmolive Co. | 192,728 | $ 15,445,222 | ||
International Flavors & Fragrances, Inc. | 95,917 | 11,425,633 | ||
Kimberly-Clark Corp. | 162,146 | 21,914,032 | ||
Reckitt Benckiser Group PLC | 177,306 | 13,316,997 | ||
$62,101,884 | ||||
Electrical Equipment – 1.2% | ||||
Johnson Controls International PLC | 595,165 | $ 28,496,500 | ||
Electronics – 4.5% | ||||
Analog Devices, Inc. | 115,942 | $ 16,937,967 | ||
KLA Corp. | 44,129 | 14,080,681 | ||
NXP Semiconductors N.V. | 145,844 | 21,589,287 | ||
Texas Instruments, Inc. | 362,940 | 55,765,731 | ||
$108,373,666 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Energy - Independent – 3.8% | ||||
ConocoPhillips | 424,872 | $ 38,157,754 | ||
EOG Resources, Inc. | 184,985 | 20,429,744 | ||
Pioneer Natural Resources Co. | 148,777 | 33,189,173 | ||
$91,776,671 | ||||
Food & Beverages – 3.0% | ||||
Archer Daniels Midland Co. | 101,584 | $ 7,882,918 | ||
Nestle S.A. | 309,368 | 36,113,728 | ||
PepsiCo, Inc. | 165,368 | 27,560,231 | ||
$71,556,877 | ||||
Gaming & Lodging – 0.9% | ||||
Marriott International, Inc., “A” | 152,453 | $ 20,735,133 | ||
Health Maintenance Organizations – 2.6% | ||||
Cigna Corp. | 234,286 | $ 61,739,047 | ||
Insurance – 10.7% | ||||
Aon PLC | 215,466 | $ 58,106,871 | ||
Chubb Ltd. | 274,344 | 53,930,543 | ||
Marsh & McLennan Cos., Inc. | 354,241 | 54,995,915 | ||
Progressive Corp. | 461,806 | 53,694,184 | ||
Travelers Cos., Inc. | 210,078 | 35,530,492 | ||
$256,258,005 | ||||
Machinery & Tools – 4.3% | ||||
Eaton Corp. PLC | 275,245 | $ 34,678,117 | ||
Illinois Tool Works, Inc. | 189,415 | 34,520,884 | ||
PACCAR, Inc. | 153,158 | 12,611,030 | ||
Trane Technologies PLC | 161,561 | 20,981,927 | ||
$102,791,958 | ||||
Major Banks – 7.3% | ||||
Goldman Sachs Group, Inc. | 83,832 | $ 24,899,781 | ||
JPMorgan Chase & Co. | 726,069 | 81,762,630 | ||
Morgan Stanley | 546,601 | 41,574,472 | ||
PNC Financial Services Group, Inc. | 170,837 | 26,952,953 | ||
$175,189,836 | ||||
Medical & Health Technology & Services – 1.5% | ||||
McKesson Corp. | 106,406 | $ 34,710,701 | ||
Medical Equipment – 7.2% | ||||
Abbott Laboratories | 325,618 | $ 35,378,396 | ||
Boston Scientific Corp. (a) | 582,968 | 21,727,217 | ||
Danaher Corp. | 122,707 | 31,108,679 | ||
Medtronic PLC | 383,955 | 34,459,961 | ||
Thermo Fisher Scientific, Inc. | 89,799 | 48,786,001 | ||
$171,460,254 | ||||
Other Banks & Diversified Financials – 3.2% | ||||
American Express Co. | 267,241 | $ 37,044,948 | ||
Moody's Corp. | 59,959 | 16,307,049 | ||
Truist Financial Corp. | 314,143 | 14,899,803 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – continued | ||||
U.S. Bancorp | 152,519 | $ 7,018,924 | ||
$75,270,724 | ||||
Pharmaceuticals – 8.5% | ||||
Johnson & Johnson | 483,843 | $ 85,886,971 | ||
Merck & Co., Inc. | 486,903 | 44,390,947 | ||
Pfizer, Inc. | 1,235,357 | 64,769,767 | ||
Roche Holding AG | 22,799 | 7,607,627 | ||
$202,655,312 | ||||
Railroad & Shipping – 2.5% | ||||
Canadian National Railway Co. | 130,971 | $ 14,730,308 | ||
Union Pacific Corp. | 215,631 | 45,989,780 | ||
$60,720,088 | ||||
Real Estate – 0.4% | ||||
Public Storage, Inc., REIT | 33,772 | $ 10,559,491 | ||
Specialty Chemicals – 1.1% | ||||
DuPont de Nemours, Inc. | 464,772 | $ 25,832,028 | ||
Specialty Stores – 2.5% | ||||
Lowe's Cos., Inc. | 206,701 | $ 36,104,464 | ||
Target Corp. | 158,487 | 22,383,119 | ||
$58,487,583 | ||||
Utilities - Electric Power – 7.4% | ||||
American Electric Power Co., Inc. | 195,720 | $ 18,777,377 | ||
Dominion Energy, Inc. | 532,087 | 42,465,863 | ||
Duke Energy Corp. | 511,971 | 54,888,411 | ||
Southern Co. | 656,175 | 46,791,839 | ||
Xcel Energy, Inc. | 184,289 | 13,040,290 | ||
$175,963,780 | ||||
Total Common Stocks (Identified Cost, $1,324,512,115) | $2,367,015,398 | |||
Investment Companies (h) – 0.9% | ||||
Money Market Funds – 0.9% | ||||
MFS Institutional Money Market Portfolio, 1.21% (v) (Identified Cost, $20,315,421) | 20,316,122 | $ 20,314,091 | ||
Other Assets, Less Liabilities – 0.0% | 899,378 | |||
Net Assets – 100.0% | $2,388,228,867 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $20,314,091 and $2,367,015,398, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/22Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,324,512,115) | $2,367,015,398 |
Investments in affiliated issuers, at value (identified cost, $20,315,421) | 20,314,091 |
Cash | 171,650 |
Receivables for | |
Investments sold | 3,153,287 |
Fund shares sold | 383,545 |
Dividends | 3,321,802 |
Other assets | 3,459 |
Total assets | $2,394,363,232 |
Liabilities | |
Payables for | |
Investments purchased | $3,255,298 |
Fund shares reacquired | 2,496,342 |
Payable to affiliates | |
Investment adviser | 88,921 |
Administrative services fee | 2,253 |
Shareholder servicing costs | 667 |
Distribution and/or service fees | 16,736 |
Payable for independent Trustees' compensation | 158 |
Accrued expenses and other liabilities | 273,990 |
Total liabilities | $6,134,365 |
Net assets | $2,388,228,867 |
Net assets consist of | |
Paid-in capital | $1,055,842,731 |
Total distributable earnings (loss) | 1,332,386,136 |
Net assets | $2,388,228,867 |
Shares of beneficial interest outstanding | 112,596,735 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,170,776,931 | 54,517,494 | $21.48 |
Service Class | 1,217,451,936 | 58,079,241 | 20.96 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/22 | |
Net investment income (loss) | |
Income | |
Dividends | $28,979,148 |
Dividends from affiliated issuers | 37,905 |
Other | 23,899 |
Foreign taxes withheld | (243,279) |
Total investment income | $28,797,673 |
Expenses | |
Management fee | $8,884,720 |
Distribution and/or service fees | 1,669,352 |
Shareholder servicing costs | 34,088 |
Administrative services fee | 199,407 |
Independent Trustees' compensation | 19,329 |
Custodian fee | 57,265 |
Shareholder communications | 49,433 |
Audit and tax fees | 31,338 |
Legal fees | 6,059 |
Miscellaneous | 38,871 |
Total expenses | $10,989,862 |
Reduction of expenses by investment adviser | (182,338) |
Net expenses | $10,807,524 |
Net investment income (loss) | $17,990,149 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $93,670,131 |
Affiliated issuers | (1,041) |
Foreign currency | (1,336) |
Net realized gain (loss) | $93,667,754 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(482,805,865) |
Affiliated issuers | (1,330) |
Translation of assets and liabilities in foreign currencies | (33,346) |
Net unrealized gain (loss) | $(482,840,541) |
Net realized and unrealized gain (loss) | $(389,172,787) |
Change in net assets from operations | $(371,182,638) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/22 (unaudited) | 12/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $17,990,149 | $32,069,015 |
Net realized gain (loss) | 93,667,754 | 152,258,102 |
Net unrealized gain (loss) | (482,840,541) | 412,863,015 |
Change in net assets from operations | $(371,182,638) | $597,190,132 |
Total distributions to shareholders | $— | $(91,925,640) |
Change in net assets from fund share transactions | $(73,274,665) | $(123,147,782) |
Total change in net assets | $(444,457,303) | $382,116,710 |
Net assets | ||
At beginning of period | 2,832,686,170 | 2,450,569,460 |
At end of period | $2,388,228,867 | $2,832,686,170 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $24.72 | $20.40 | $20.95 | $17.30 | $20.92 | $18.90 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.17 | $0.31 | $0.31 | $0.33 | $0.41 | $0.30 |
Net realized and unrealized gain (loss) | (3.41) | 4.84 | 0.29 | 4.68 | (2.32) | 2.93 |
Total from investment operations | $(3.24) | $5.15 | $0.60 | $5.01 | $(1.91) | $3.23 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.31) | $(0.30) | $(0.44) | $(0.32) | $(0.40) |
From net realized gain | — | (0.52) | (0.85) | (0.92) | (1.39) | (0.81) |
Total distributions declared to shareholders | $— | $(0.83) | $(1.15) | $(1.36) | $(1.71) | $(1.21) |
Net asset value, end of period (x) | $21.48 | $24.72 | $20.40 | $20.95 | $17.30 | $20.92 |
Total return (%) (k)(r)(s)(x) | (13.11)(n) | 25.45 | 3.48 | 29.80 | (10.09) | 17.65 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.72(a) | 0.72 | 0.73 | 0.73 | 0.73 | 0.74 |
Expenses after expense reductions | 0.71(a) | 0.70 | 0.71 | 0.72 | 0.72 | 0.73 |
Net investment income (loss) | 1.52(a) | 1.33 | 1.64 | 1.67 | 2.02 | 1.51 |
Portfolio turnover | 8(n) | 9 | 17 | 13 | 8 | 10 |
Net assets at end of period (000 omitted) | $1,170,777 | $1,363,583 | $1,183,318 | $945,183 | $823,744 | $996,794 |
Service Class | Six months ended | Year ended | ||||
6/30/22 (unaudited) | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $24.16 | $19.96 | $20.52 | $16.96 | $20.55 | $18.59 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.14 | $0.24 | $0.25 | $0.27 | $0.35 | $0.25 |
Net realized and unrealized gain (loss) | (3.34) | 4.75 | 0.29 | 4.59 | (2.28) | 2.87 |
Total from investment operations | $(3.20) | $4.99 | $0.54 | $4.86 | $(1.93) | $3.12 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.27) | $(0.25) | $(0.38) | $(0.27) | $(0.35) |
From net realized gain | — | (0.52) | (0.85) | (0.92) | (1.39) | (0.81) |
Total distributions declared to shareholders | $— | $(0.79) | $(1.10) | $(1.30) | $(1.66) | $(1.16) |
Net asset value, end of period (x) | $20.96 | $24.16 | $19.96 | $20.52 | $16.96 | $20.55 |
Total return (%) (k)(r)(s)(x) | (13.25)(n) | 25.16 | 3.22 | 29.51 | (10.36) | 17.35 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.97(a) | 0.97 | 0.98 | 0.98 | 0.98 | 0.99 |
Expenses after expense reductions | 0.96(a) | 0.95 | 0.96 | 0.97 | 0.97 | 0.98 |
Net investment income (loss) | 1.27(a) | 1.08 | 1.38 | 1.42 | 1.77 | 1.26 |
Portfolio turnover | 8(n) | 9 | 17 | 13 | 8 | 10 |
Net assets at end of period (000 omitted) | $1,217,452 | $1,469,104 | $1,267,251 | $1,279,123 | $1,127,848 | $1,398,374 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $2,367,015,398 | $— | $— | $2,367,015,398 |
Mutual Funds | 20,314,091 | — | — | 20,314,091 |
Total | $2,387,329,489 | $— | $— | $2,387,329,489 |
Year ended 12/31/21 | |
Ordinary income (including any short-term capital gains) | $32,692,062 |
Long-term capital gains | 59,233,578 |
Total distributions | $91,925,640 |
As of 6/30/22 | |
Cost of investments | $1,349,613,201 |
Gross appreciation | 1,063,291,641 |
Gross depreciation | (25,575,353) |
Net unrealized appreciation (depreciation) | $1,037,716,288 |
As of 12/31/21 | |
Undistributed ordinary income | 43,568,093 |
Undistributed long-term capital gain | 140,172,099 |
Other temporary differences | 23,087 |
Net unrealized appreciation (depreciation) | 1,519,805,495 |
Six months ended 6/30/22 | Year ended 12/31/21 | ||
Initial Class | $— | $44,596,694 | |
Service Class | — | 47,328,946 | |
Total | $— | $91,925,640 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion | 0.60% |
Six months ended 6/30/22 | Year ended 12/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 3,617,731 | $83,738,542 | 6,770,909 | $152,854,221 | |
Service Class | 21,755,811 | 484,602,642 | 6,371,855 | 143,168,312 | |
25,373,542 | $568,341,184 | 13,142,764 | $296,022,533 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 1,886,493 | $44,596,694 | |
Service Class | — | — | 2,046,215 | 47,328,946 | |
— | $— | 3,932,708 | $91,925,640 | ||
Shares reacquired | |||||
Initial Class | (4,264,456) | $(98,390,210) | (11,503,983) | $(262,149,729) | |
Service Class | (24,484,042) | (543,225,639) | (11,093,369) | (248,946,226) | |
(28,748,498) | $(641,615,849) | (22,597,352) | $(511,095,955) | ||
Net change | |||||
Initial Class | (646,725) | $(14,651,668) | (2,846,581) | $(64,698,814) | |
Service Class | (2,728,231) | (58,622,997) | (2,675,299) | (58,448,968) | |
(3,374,956) | $(73,274,665) | (5,521,880) | $(123,147,782) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $38,380,359 | $155,602,684 | $173,666,581 | $(1,041) | $(1,330) | $20,314,091 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $37,905 | $— |
Item 1(b):
Not applicable.
ITEM 2. CODE OF ETHICS.
During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the "Code") that relates to an element of the Code's definitions enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the Registrant.
ITEM 6. INVESTMENTS
A schedule of investments for each series of the Registrant is included as part of the report to shareholders of such series under Item 1(a) of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant's Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as conducted within 90 days of the filing date of this report on Form N-CSR, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by the report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 13. EXHIBITS.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. Not applicable.
(2)A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto as EX-99.302CERT.
(3)Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(4)Change in the registrant's independent public accountant. Not applicable.
(b)If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Attached hereto as EX-99.906CERT.
Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MFS VARIABLE INSURANCE TRUST_ _
By (Signature and Title)* | /S/ DAVID L. DILORENZO |
| David L. DiLorenzo, President |
Date: August 15, 2022 |
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* |
| /S/ DAVID L. DILORENZO | |
| David L. DiLorenzo, President (Principal Executive Officer) | ||
Date: August 15, 2022 |
|
|
|
By (Signature and Title)* |
| /S/ JAMES O. YOST |
|
|
| James O. Yost, Treasurer (Principal Financial Officer and | |
|
| Accounting Officer) | |
Date: August 15, 2022 |
|
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|
* Print name and title of each signing officer under his or her signature.